Question

Mary Hernandez had a policy with a $250 deductible which paid 80% of her covered charges less deductible. She had medical expenses of $18,240.00.
Calculate:

a. the insurance company's payment

b. the 20% copayment

c. Mary's total cost

Answer 1

A. the insurance company's payment = $14,392
$18240 - $250 = 17990 x 80% = $14,392

b. the 20% copayment
17990 * 20% = $3598

c. Mary's total cost
$250 + $3598 = $3848

Answer 2

Answer

Given

Mary Hernandez had a policy with a $250 deductible which paid 80% of her covered charges less deductible.

She had medical expenses of $18,240.00.

First find out the insurance company's payment .

Definition of deductible

The insurance deductible is the amount of money you will pay in an insurance claim before the company starts paying you.

Thus

Medical expenses after reducing the deductible =  $18,240 -  $250

                                                                                 = $ 17990

As given

The policy paid  80% of Mary covered charges less deductible.

80% is written in the decimal form.

$= \frac{80}{100}$

= 0.80

insurance company's payment = 0.80 × 17990

                                                   = $14392

Second find the 20% copayment  

20 % is written in the decimal form.

$= \frac{20}{100}$

= 0.20

Thus

The 20% copayment  = 0.20 × 17990

                                   = $3598

Third find the Mary's total cost

Mary total cost = Deductible cost +  20% copayment cost

                        = 250 + 3598

                         = $ 3848

Thus the Mary total cost is  $ 3848 .