EBK PFIN
6th Edition
ISBN: 8220103648844
Author: Billingsley
Publisher: CENGAGE L
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Question
Chapter 9, Problem 4FPE
a)
Summary Introduction
To calculate: The out of pocket expenses of Person B.
b)
Summary Introduction
To calculate: The out of pocket expenses of Person B under HMO.
c)
Summary Introduction
To determine: The effective plan among HMO and standard plan.
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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.
$
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