Beckys comprehensive major medical health insurance plan at work has a deductible of $700. The policy pays 75 percent of any amount above the deductible. While on a hiking trip, Becky contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and a six-day hospital stay, totaled $9,273. A friend told her that she would have paid less if she had a policy with a stop-loss feature that capped her out-of-pocket expenses at $4,900. a. Calculate the total amount Becky would pay under the current policy. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Would a $4,900 stop-loss provision on her current policy have reduced Becky's cost for this illness?

a. Calculate the total amount Becky would pay under the current policy. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

b. Would a $4,900 stop-loss provision on her current policy have reduced Becky's cost for this illness?

Yes No