Question

Jon Snow was recently stabbed with resulting

medical bills of $4,000. His health insurance

includes the following:

$1,000 calendar-year deductible

80/20 coinsurance clause

$5,000 out-of-pocket max

1.

After insurance is applied, how much will Jon

owe for the medical bill?

2.

Jon needs surgery during the same calendar

year that costs $30,000. After insurance is

applied, how much will Jon owe for the surge

Answer #1

Question 1.

medical bills = $4,000

Deductible amount = $1,000

Deductible amount is paid by Jon and 20% of the remaining amount is paid by Jon as per the coinsurance

Coinsurance dollar amount paid by Jon = 20% of $3,000 = $600

Jon Snow owes for the medical bill = $1,000 + $600 = $1,600

Question 2.

Cost for surgery = $30,000

Jon first pays $1,000 deductible

out of the remaining amount $29,000; 20% is supposed to be paid by Jon = 20% of $29000 = $5,800

total amount to be paid by Jon sums upto $6,800 ($1,000+$5,800) but the out of pocket max = $5,000

so Jon pays a total of $5,000 and the insurer pays remaining $25,000 ($30,000 - $5,000).

1. Determine the out-of-pocket costs in the following
scenario.
Carl's health insurance includes a $400 deductible and 80/20
coinsurance on all services that are not preventable.
Carl visited the doctor for a sore throat on January
1st. The bill was $40. How much will Carl pay for the
visit?
2. Determine the out-of-pocket costs in the following
scenario.
Cyrus's health insurance includes a $2,000 deductible and 80/20
coinsurance on all services that are not preventable.
He has an appendectomy on January...

Peter has a health insurance policy that includes a deductible
of $1,500, a coinsurance of 20%, and a stop-loss of $5,000. If his
total bill is $20,000, how much will he pay? Show
all calculations and explain
your answer.

Joy’s health insurance includes a 20-80 coinsurance provision,
after a $250 deductible is satisfied. Joy needed medical attention
and the covered medical expenses totaled $25,250. How will this
claim be settled? What if there is also a stop-loss limit of
$5,000?

Your health insurance has of an annual deductible of $750 per
person or $1,500 per family. After meeting the deductible, you must
pay 20 percent of covered charges until you reach $5,000 out of
pocket, after which the insurer will pay 100 percent of the costs.
Assume that your family had no other claims during the year and
that your child requires emergency surgery. If the total covered
charges for the surgery are $25,000, all incurred in the same plan...

10. Scott takes $10,000 from his
bank account to set up a small donut-shop business. He meets with
an attorney, and finds out he can set up a sole proprietorship for
under $100, but a corporation would cost over $500 ($175 to the
state, about $400 to the attorney). He decides on a sole
proprietorship. He signs a one-year lease, and starts his business.
After six months of operations, he closes the business because of
much-lower-than-expected sales. After using the...

The following article does a good job of breaking down the
advantages/disadvantages of leasing vs. purchasing vehicles: Title:
Pros and Cons of Leasing vs. Buying a Vehicle Source:
http://www.investopedia.com/articles/pf/05/042105.asp Buying a car
can be overwhelming. In fact, the pleasure of getting a new car can
be quickly clouded during the financing decision-making process and
price negotiations. Besides price haggling, many car shoppers are
plagued with the decision to leaseor buy. Which financing decision
is right and why? This article will...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 8 minutes ago

asked 16 minutes ago

asked 22 minutes ago

asked 27 minutes ago

asked 48 minutes ago

asked 55 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago