Question

# Harry Snow was injured in a car accident and had to spend 37 days in the...

Harry Snow was injured in a car accident and had to spend 37 days in the hospital.  His medical bill included a \$7,532 in hospital charges plus a 16.6% of these charges for recuperative care. Calculate:

a) How much his health insurance policy of 80:20 is going to pay, and

b) How much will he end up paying out of that claim?

Given the following policy information:

-\$6,700 policy limit per claim

-\$7.50 deductible per day of hospitalization

Solution:-

Harry Snow medical bill 7,532 plus recuperative care 16.6% of these bills that is:

=> 7,532*.166 = 1250.312

Total medical expenses period of 37 days hospitalization =7532 + 1250.312 = 8782.312 or 8782

This is a 80 / 20 policy the first digit indicates what share the insurance company would pay and second digit indicate that Harry snow would pay.

The policy says 7.5 deductible per day of hospitalization.

The policy has a ceiling of 6,700 per claim.

a) Insurance company will 80% of 8782 that is 7025.60 less deuction of:

37*7.50 =277.5 So,

7025.60-277.5 = 6748.1 subject to a limit of 6,700 per Claim

Insurance company will pay only \$ 6,700

b) Harry Snow will end up paying:

8782 - 6700 = \$2,082 out of that claim.

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