Question

Melanie's insurance policy covers a $200 payment for an emergency room visit. If she is admitted the policy then covers 80% of the expenses. A hospital stay is paid at 80% of the expenses for the first two days and 100% of the expenses for any remaining days. Melanie went to the emergency room and the charges were $840. She was admitted to the hospital for 6 days. The charges were as follows: Day 1, $360; Day 2, $492; Day 3, $298; Day 4, 980; Day 5, $1006; Day 6, $781. What amount did the insurance company pay? What amount did Melanie pay?

Answer 1

Answer: $330.60.

Explanation:

Answer 2

First, we need to calculate the amount that the insurance company will pay for the hospital stay.

On the first two days, the insurance will pay 80% of the expenses, which is:

0.8 x ($360 + $492) = $698.40

On the remaining 4 days, the insurance will pay 100% of the expenses, which is:

4 x $840 x 0.8 = $2688

Therefore, the total amount that the insurance company will pay is:

$200 + $698.40 + $2688 = $3586.40

Now, we can calculate the amount that Melanie will pay. Her total expenses for the hospital stay were:

$360 + $492 + $298 + $980 + $1006 + $781 = $3917

The insurance company paid $3586.40, so Melanie is responsible for paying the difference:

$3917 - $3586.40 = $330.60

Therefore, the insurance company paid $3586.40, and Melanie paid $330.60.