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 cost-effective coverage for Samuel?____________________________________________________________________________________________________________________________________________________

Given information: Follow up visits are 6 Deductible expenses is $500 Health insurance pays 90% of…

Answered: Samuel Nguyen was seriously injured in…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

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 4FPE

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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 cost-effective coverage for Samuel?
____________________________________________________________________________________________________________________________________________________

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