Answered: How much of this person’s direct…

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 los

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 40P

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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?
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? $
C.J Watson of Clemson, SC, recently had a surgery. His total bill for the surgery, which was his only health care expense for the year, came to $12,890. His health insurance plan has a $500 annual deductible and an 80/20 coinsurance provision (meaning CJ will only pay 20% of the costs). The coinsurance cap for CJ is $2,000. How much of the bill will CJ pay?
Justin Granovsky, an assistant manager at a small retail shop in Morgantown, West Virginia, has an unusual amount of debt. He owes $5,400 to one bank, $1,800 to a clothing store, $2,700 to his credit union, and several hundred dollars to other stores and individuals. Justin is paying more than $460 per month on the three major obligations to pay them off when due in two years. He realized that his take-home pay of slightly more than $3,100 per month did not leave him with much excess cash. Justin discussed a different way of handling his major payments with his bank’s loan of-ficer. The officer suggested that Justin pool all of his debts and take out an $11,000 debt-consolidation loan for seven years at 14 percent interest. As a result, he would pay only $250 per month for all his debts. Justin seemed ecstatic over the idea. (a) Is Justin’s enthusiasm over the idea of a debt-consolidation loan justified? Why or why not? (b) Why can the bank offer such a “good deal” to Justin?…
Oscar Wang was seriously injured in a snowboarding accident that broke both his legs and an arm. His medical expenses included five days of hospitalization at $900 a day, $9,400 in surgical fees, $6,800 in physician's fees (including time in the hospital and six follow-up office visits), $460 in prescription medications, and $2,100 for physical therapy treatments. All of these charges fall within customary and reasonable payment amounts. If Oscar had an indemnity plan that pays 90 percent of his charges with a $1,000 deductible and a $5,000 stop-loss provision, how much would he have to pay out of pocket? Round the answer to the nearest dollar. $ What would Oscar's out-of-pocket expenses be if he belonged to an HMO with a $40 co-pay for office visits? Assume there are no other out-of-pocket costs. Round the answer to the nearest dollar. $ Monthly premiums are $320 for the indemnity plan and $455 for the HMO. If he has no other medical expenses this year, which plan provides…
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…
Floyd owns an antique shop. During the year, he and his wife, Amanda, who works as a real estate broker, attend a 3-day antique show in Boston. The following facts are related to the trip: Train per person $ 110 Hotel daily rate—double occupancy * 115 Meals—$37 per day per person 37 Incidentals—$14 per day per person 14 *The hotel rate for double occupancy is $20 more than the single occupancy rate. What amount can Floyd and Amanda deduct as travel expense, rounded to the nearest dollar?
Case: Two months ago, Lisa was honorably discharged from the Air Force where she spent four years training as an airplane mechanic. After discharge, she relocated to take a 40 hour per week apprentice mechanic job with a major airline company where she earns $18 an hour. Last month, her husband Dave, who has worked the past two years as a registered nurse, found a nursing job with a local hospital making $625 per week. They just bought a new car and pay $400 each month on that loan and have no other monthly debts. What is the maximum mortgage payment (PITI) a lender would allow for a conventional loan based on the housing expense ratio only? Using the total debt-to-income ratio, what is the maximum amount of total debt allowed for a conventional loan? What is the maximum mortgage payment (PITI) a lender would allow for a conventional loan using total debt-to-income ratio only? Can Lisa and Dave get approved for a loan, even though they’ve only been at their jobs a short time? Explain.
Michael Howitt of Berkley, Michigan, recently had his gallbladder removed. His total bill for this surgery, which was his only health care expense for the year, came to $13,810. His health insurance plan has a $450 annual deductible and an 80/20 coinsurance provision. The cap on Michael's coinsurance share is $1,910. Round your answers to the nearest dollar. a. How much of the bill will Michael pay? b. How much of the bill will be paid by Michaels insurance?
Kevin Bright, a fitness instructor, was hospitalized after breaking both of his legs at work as a result of tripping over unprotected wire at the entrance to his workplace. Due to the extent of his injury, Kevin requires a surgery followed by a four-month rehabilitation during which he will not be able to perform his work duties. Kevin’s Base Wage is AED20,000 a month. Kevin’s rehabilitation must take place at the hospital facility equipped with special devises to guarantee his full recovery. Each month of rehabilitation costs AED30,000, which is more than what Kevin makes a month. Kevin worries that he cannot afford to stay in the hospital, so he calls you for your advice. 1. As per UAE Labour Law, what is Kevin’s right regarding his injury at the workplace? 2. Shall Kevin get paid during his rehabilitation? If yes, how much? 3. Who shall pay for his medical expenses during the rehabilitation?
Ginger Brown has a take-home pay of $700 a week. Her disability insurance coverage replaces 70 percent of her earnings after a four-week waiting period. What amount would she receive in disability benefits if an illness kept Ginger off work for 16 weeks? please show working
Sam Smith is currently employed as a mechanical engineer and is paid$65,000 per year plus benefits that are equal to 30 percent of his salary. Sam wants to begin a consulting firm and decides to leave his current job.After his first year in business, Sam’s accountant informs him that he hasmade $45,000 with his consulting business. Sam also notices that he paid$6,000 for a health insurance policy, which was his total benefit during hisfirst year. What was Sam’s opportunity cost?