EBK FOCUS ON PERSONAL FINANCE
6th Edition
ISBN: 9781260140965
Author: Kapoor
Publisher: MCGRAW HILL BOOK COMPANY
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Chapter 9, Problem 5P
Summary Introduction
To determine: The amount payable by Person S.
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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?
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If Samuel had a health insurance plan that pays 90 percent of his charges with a $500 deductible and a $5,000 stop-loss provision, how much would he have to pay out of pocket? Round to the nearest dollar.$ _____________________
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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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