SWFT Individual Income Taxes
43rd Edition
ISBN: 9780357391365
Author: YOUNG
Publisher: Cengage
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Mercy for America, a private not-for-profit health care facility located in Durham, North Carolina, charged a patient $8,600 for services. It actually billed this amount to the patient’s third-party payor. The third-party payor submitted a check for $7,900 with a note stating that “the reasonable amount is paid in full per contract.” Which of the following statements is true? Choose the correct.a. The patient is responsible for paying the remaining $700.b. The health care facility will rebill the third-party payor for the remaining $700.c. The health care facility recorded the $700 as a contractual adjustment that it will not collect.d. The third-party payor retained the $700 and will convey it to the health care facility at the start of the next fiscal period.
Mercy for America, a private not-for-profit health care facility located in Durham, North Carolina, charged a patient $8,600 for services. It actually billed this amount to the patient’s third-party payor. The third-party payor submitted a check for $7,900 with a note stating that “the reasonable amount is paid in full per contract.” Which of the following statements is true?
The patient is responsible for paying the remaining $700.
The health care facility will rebill the third-party payor for the remaining $700.
The health care facility recorded the $700 as a contractual adjustment that it will not collect.
The third-party payor retained the $700 and will convey it to the health care facility at the start of the next fiscal period.
The Baulding family has a basic health insurance plan that pays 80 percent of out-of-hospital expenses after a deductible of $250 per person. If three family members have doctor and prescription drug expenses of $984, $1,507, and $213 respectively, how much will the Baulding family and the insurance company each pay? How could they benefit from a flexible spending account established through Mr. Baulding's employer? What are the advantages and disadvantages of establishing such an account?
The Baulding family will pay?
The insurance company will pay?
How could they benefit from a flexible spending account established through Mr. Baulding's employer? What are the advantages and disadvantages of establishing such an account?
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