Question

2 medical plans. Plan 1 employee pays 10% of all medical bills. Plan 2 employee pays one time payment of $150 then employee pays 5% of all medical bills. What total medical bill would result in the employee paying the same amount with the 2 plans?

Answer 1

$3000

Explanation:

The computation of the total medical bill is shown below:

Let us assume the total medical bill be $x

For plan 1,

As he pays 10% of x, So 10% of x - (1)

For plan 2 ,

As he pays 5% of x + 150, that is 0.05 of x + 150 - (2)

Now equate both the equations

0.10x = 0.05x + 150

0.05x=150

x = $3000

Total medical bill = $ 3000