Question

A health insurance policy pays 65 percent of physical therapy costs after a deductible of $340. In contrast, an HMO charges $22 per visit for physical therapy. How much would a person save with the HMO if he or she had 10 physical therapy sessions costing $85 each? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.)

Answer 1

A person would save $298.50 with the HMO for 10 physical therapy sessions costing $85 each, compared to using an insurance policy that covers 65% of costs after a $340 deductible.

Step-by-step explanation:

The student needs to calculate how much a person would save with the HMO compared to an insurance policy that pays 65% of physical therapy costs after a deductible of $340, for 10 sessions costing $85 each. Let's break down the costs for each option:

With Insurance:

Total cost of 10 sessions: 10 x $85 = $850

Subtract the deductible: $850 - $340 = $510

Insurance pays 65% of the remaining amount: 65% of $510 = $331.50

Person pays 35% of the remaining amount after deductible: 35% of $510 = $178.50

Total amount paid by the person: $340 (deductible) + $178.50 (35%) = $518.50

With HMO:

HMO charges per visit: 10 x $22 = $220

Now, we calculate the savings:

Savings with HMO: $518.50 (insurance) - $220 (HMO) = $298.50

The person would save $298.50 with the HMO compared to the insurance policy if they had 10 physical therapy sessions costing $85 each.

Answer 2

45$

Step-by-step explanation: