Question

Paul Smith pays $50.00 a month for group health insurance. There is a $300 deductible. His medical bills for the last year were $2,600.00. Paul’s insurance company provided payment of 80% of the bills less the deductible. What was the insurance company's payment?

Answer 1

To find the insurance company's payment, calculate the amount covered by the insurance company and subtract the deductible.

Step-by-step explanation:

In this question, we are given that Paul Smith pays $50.00 a month for group health insurance, with a $300 deductible. His medical bills for the last year totaled $2,600.00. The insurance company will cover 80% of the bills, minus the deductible. To find the insurance company's payment, we can follow these steps:

1. Calculate the amount covered by the insurance company: $2,600.00 * 0.8 = $2,080.00
2. Subtract the deductible from the amount covered: $2,080.00 - $300.00 = $1,780.00

Therefore, the insurance company's payment is $1,780.00.