Question

Ginger Smith was seen in Dr. Sampson's office today for an allergic reaction to a prescribed drug. Total charges today are $100.00. Allowed amount is $77.00.

Answer 1

Answer: Ginger Smith will have to pay $23.00

Step-by-step explanation:

When we talk about a Health Insurance, the Allowed amount $A$ is the maximum amount the Health Insurance company will cover for health care services.  

So, if the health care provider charges more than this allowed amount (as in this situation with Ginger Smith), Ginger will have to pay the difference $D$, which is calculated by:

$D=T-A$

$T=\ 100.00$ are the total charges

$A=\ 77.00$ is the allowed amount

$D=\ 100.00-\ 77.00$

$D=\ 23.00$ This is the difference Ginger Smith will have to pay