Health Care Event Protection Christina Haley of Elko, Nevada, age 57, recently suffered a stroke. She was in intensive care for 3 days and was hospitalized for 10 more days. Her total bill for this care was $126,000. After being discharged from the hospital, she spent 25 days in a nursing home at a cost of $240 per day. Christina, who earns $4,500 per month, missed two months of work. Christina had a health nsurance plan through her employer. The policy had a $1,000 deductible and an 80/20 coinsurance clause with a $2,000 coinsurance cap. She had also accumulated 21 sick days (equivalent to one month) at work. Otherwise she had no long-term care or disability income insurance. Round your answers to the nearest dollar. a. How much of Christina's direct medical expenses was paid by her insurance policy? $ b. What did Christina have to pay for her nursing home care? $ c. How much income did Christina lose? $

Health Care Event Protection Christina Haley of Elko, Nevada, age 57, recently suffered a stroke. She was in intensive care for 3 days and was hospitalized for 10 more days. Her total bill for this care was $126,000. After being discharged from the hospital, she spent 25 days in a nursing home at a cost of $240 per day. Christina, who earns $4,500 per month, missed two months of work. Christina had a health nsurance plan through her employer. The policy had a $1,000 deductible and an 80/20 coinsurance clause with a $2,000 coinsurance cap. She had also accumulated 21 sick days (equivalent to one month) at work. Otherwise she had no long-term care or disability income insurance. Round your answers to the nearest dollar. a. How much of Christina's direct medical expenses was paid by her insurance policy? $ b. What did Christina have to pay for her nursing home care? $ c. How much income did Christina lose? $

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter9: Insuring Your Health

Section: Chapter Questions

Problem 5FPE

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Christina Haley of Elko, Nevada, age 57, recently suffered a stroke. She was in intensive care for 3 days and was hospitalized for 10 more days. Her total bill for this care was $132,500. After being discharged from the hospital, she spent 25 days in a nursing home at a cost of $290 per day. Christina, who earns $4,500 per month, missed two months of work. Christina had a health insurance plan through her employer. The policy had a $1,000 deductible and an 80/20 coinsurance clause with a $2,000 coinsurance cap. She had also accumulated 21 sick days (equivalent to one month) at work. Otherwise she had no long-term care or disability income insurance. Round your answers to the nearest dollar. How much of Christina’s direct medical expenses was paid by her insurance policy? $ What did Christina have to pay for her nursing home care? $ How much income did Christina lose? $
Stephanie was involved in a car accident and rushed to the emergency room. She received stitches for a facial and treatment for a broken finger. Under Stephanie PPO plan, emergency room care at a network hospital is 80 percent covered after the member has met a 300 annual deductible. Assume that Stephanie went to a hospital within her PPO network. Her total emergency room bill was 850. What amount did Stephanie have to pay? What amount did the PPO cover?
Harold Monette vacationed at Lake Tahoe last winter. Unfortunately, he broke his ankle while skiing and spent two days at the Sierra University Hospital. Monette’s insurance company received a $4,950 bill for his two-day stay. One item that caught Monette’s attention was a $10.60 charge for a roll of cotton. Monette is a salesman for Johnson & Johnson and knows that the cost to the hospital of the roll of cotton is between $2.45 and $3.25. He asked for a breakdown of the $10.60 charge. The accounting office of the hospital sent him the following information: a. Invoiced cost of cotton roll = $ 2.65 b. Cost of processing of paperwork for purchase = 0.57 c. Supplies-room management fee = 0.74 d. Operating-room and patient-room handling costs = 1.62 e. Administrative hospital costs = 1.06 f. University teaching-related costs = 0.61 g. Malpractice insurance costs = 1.18 h. Cost of treating uninsured patients = 1.52 i. Profit component = 0.65 Total = $10.60 Monette believes the…
Harold Monette vacationed at Lake Tahoe last winter. Unfortunately, he broke his ankle while skiing and spent two days at the Sierra University Hospital. Monette’s insurance company received a $4,950 bill for his two-day stay. One item that caught Monette’s attention was a $10.60 charge for a roll of cotton. Monette is a salesman for Johnson & Johnson and knows that the cost to the hospital of the roll of cotton is between $2.45 and $3.25. He asked for a breakdown of the $10.60 charge. The accounting office of the hospital sent him the following information: a. Invoiced cost of cotton roll = $ 2.65 b. Cost of processing of paperwork for purchase = 0.57 c. Supplies-room management fee = 0.74 d. Operating-room and patient-room handling costs = 1.62 e. Administrative hospital costs = 1.06 f. University teaching-related costs = 0.61 g. Malpractice insurance costs = 1.18 h. Cost of treating uninsured patients = 1.52 i. Profit component = 0.65 Total = $10.60 Monette believes the…
Harold Monette vacationed at Lake Tahoe last winter. Unfortunately, he broke his ankle while skiing and spent two days at the Sierra University Hospital. Monette’s insurance company received a $4,950 bill for his two-day stay. One item that caught Monette’s attention was a $10.60 charge for a roll of cotton. Monette is a salesman for Johnson & Johnson and knows that the cost to the hospital of the roll of cotton is between $2.45 and $3.25. He asked for a breakdown of the $10.60 charge. The accounting office of the hospital sent him the following information: a. Invoiced cost of cotton roll = $ 2.65 b. Cost of processing of paperwork for purchase = 0.57 c. Supplies-room management fee = 0.74 d. Operating-room and patient-room handling costs = 1.62 e. Administrative hospital costs = 1.06 f. University teaching-related costs = 0.61 g. Malpractice insurance costs = 1.18 h. Cost of treating uninsured patients = 1.52 i. Profit component = 0.65 Total = $10.60 Monette believes the…
John Klos was in the hospital for 15 days, the total bill was $152,000. Then John spent an additional 10 days in rehab which cost $200 a day. John earns $2,700 a month John missed 1 month of work (23 days) John has health insurance from work with a $500 deductible and $1,500 coinsurance cap John has 1 month of sick days (23 days) No, long-tern heath care or disability income insurance How much of this person’s direct medical expenses was paid by the insurance company? What did they have to pay for the rehab? How much income was lost?
John Bentley was in the hospital for 15 days, the total bill was $152,000. Then John spent an additional 10 days in rehab which cost $200 a day. John earns $2,700 a month John missed 1 month of work (23 days) John has health insurance from work with a $500 deductible and $1,500 coinsurance cap John has 1 month of sick days (23 days) No, long-tern heath care or disability income insurance How much of this person’s direct medical expenses was paid by the insurance company? What did they have to pay for the rehab? How much income was lost?
live’s daughter Polly suffers from a rare illness. During the current year, Olive drove Polly to see a specialist in another state 20 times. Each trip was 325 miles each way and required an overnight stay in a hotel that costs $80 per night. Olive and Patty spent a very reasonable $600 for meals, approximately $40/night for dinner and $15/day for breakfast. Olive’s AGI is $25,000. What is her medical expense deduction for the current year (assume the mileage rate is 16¢ per mile in 2021 and she itemizes)? $0 $1,805 $1,875 $3,680
Jenny Smith, age 57, is single. Jenny earned wages of $52,000 and was enrolled the entire year in a high deductible healthplan (HDHP) with self-only coverage. During the year, Jenny contributed $2,000 to her Health Savings Account (HSA) and hermother also contributed $1,000 to Jenny's HSA account. Jenny's Form W-2 shows $650 in Box 12 with code W. She has Form 5498-SA showing$3,650 in Box 2.. Jenny took a distribution from her HSA to pay her unreimbursed expenses: 8 visits to a physical therapist after her knee surgery $400 unreimbursed doctor bills for $900 prescription medicine $200 replacement of a crown $1,500 over the counter medication $40 gym membership $240 Jenny is a U.S. citizen with a valid Social Security number. 6. Form 8889, Part 1 is used to report HSA contributions made by _______________. a. Jenny b. Jenny's employer c. Jenny's mother d. All of the above Jenny is eligible to contribute an additional $1,000 to her HSA because she is age 55…
1. Michael Lim was seriously injured in a motorcycle accident that broke both his legs and arms. His medical expenses included 5 days of hospitalization at P1,000.00 per day, P162,000.00 in surgical fees, P43,000.00 in physician’s fees (including time in the hospital and eight follow-up visits), P15,200.00 in prescription medications, and P21,000.00 for physical therapy treatments. All of these charges will fall within customary and reasonable payment amounts. a) If Michael had an indemnity plan that pays 80% of his charges with a P5,000.00 deductible and a P5,000.00 stop-loss provision. How much would he have to pay out of pocket? b) What would Michael’s out-of-pocket expenses be if he belonged to an HMO with a P2,000.00 co-pay for office visits? c) Monthly premiums are at P1,550.00 for the indemnity plan and P2,500.00 for the HMO. If he had no other medical expenses this year, which plan would have provided more cost-effective coverage for Michael? What other factors should be…
Samuel Nguyen was seriously injured in a skiing accident that broke both his legs and an arm. His medical expenses included 8 days of hospitalization at $1,100 a day, $5,100 in surgical fees, $7,300 in physician's fees (including time in the hospital and six follow-up office visits), $340 in prescription medications, and $2,900 for physical therapy treatments. All of these charges fall within customary and reasonable payment amounts. If Samuel had a health insurance plan that pays 90 percent of his charges with a $500 deductible and a $5,000 stop-loss provision, how much would he have to pay out of pocket? Round to the nearest dollar.$ _____________________ What would Samuel’s out-of-pocket expenses be if he belonged to an HMO with a $40 co-pay for office visits? Round to the nearest dollar.$ ____________________ Monthly premiums are $225 for the standard plan and $205 for the HMO. If he had no other medical expenses this year, which plan would have provided more…
Lorenzo Ricci, a 38-year-old computer programmer, earns $96,000 a year. His monthly take-home pay is $4,800. His wife, Siena, works part-time at their children’s elementary school but receives no benefits. Under state law, Lorenzo’s employer contributes to a workers’ compensation insurance fund that would provide $2,250 per month for six months if he were disabled and unable to work. Use Worksheet 9.2 to calculate Lorenzo’s disability insurance needs assuming that he won’t qualify for Medicare under his Social Security benefits. Based on your answer in part a, what would you advise Lorenzo about his need for additional disability income insurance? Discuss the type and size of disability income insurance coverage that he should consider, including possible provisions that he might want to include. What other factors should he take into account if he decides to purchase a policy?