Health Care Event Protection. Christina Haley of Elko, Nevada, age 57, recently suffered a stroke. She was
Question:
Health Care Event Protection. Christina Haley of Elko, Nevada, age 57, recently suffered a stroke. She was in intensive care for 3 days and was hospitalized for 10 more days. Her total bill for this care was $125,500.
After being discharged from the hospital, she spent 25 days in a nursing home at a cost of $270 per day.
Christina, who earns $4,500 per month, missed two months of work. Christina had a health insurance plan through her employer. The policy had a $1,000 deductible and an 80/20 coinsurance clause with a
$2,000 coinsurance cap. She had also accumulated 21 sick days (equivalent to one month) at work.
Otherwise she had no long-term care or disability income insurance.
(a) How much of Christina’s direct medical expenses was paid by her insurance policy?
(b) What did Christina have to pay for her nursing home care?
(c) How much income did Christina lose?
AppendixLO1
Step by Step Answer:
Personal Finance Tax Update
ISBN: 9780357438947,9780357438930
13th Edition
Authors: E. Thomas Garman , Raymond Forgue