Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Crystal, a restaurant owner, is 24 years old and has owned a major medical insurance policy for three years. The policy, which she purchased through

image text in transcribed
image text in transcribed
Crystal, a restaurant owner, is 24 years old and has owned a major medical insurance policy for three years. The policy, which she purchased through her trade association, provides the following coverage: a $1,000,000 lifetime limit . a $2,500 deductible and 80% coinsurance clause Internal limits of $250 per day for a semi-private room and board, 54,500 per occurrence for X-rays, prescription druga, and other medical expenses, and a $45,000 maximum limit per occurrence on surgical procedures a $25,000 limit per occurrence on rehabilitation and physical therapy if a hospital charges a room rate that is greater than the policy's stated internal limit, the hospital agrees to reduce the room rate to the policy's Internal limit. Last month, Crystal was injured during a severe grease file in her restaurant. She spent 3 days in the hospital in a room that cost $350 per day Incurred $3,850 for other medical expenses, and $32,000 in surgical expenses. Given these claim costs, complete the following table and answer the related questions Policy Limit Total Claim $250 per day 5 $ Hospital charges Surgery costs Other medical costs Rehabilitation and therapy costs Deductible Co-Insurance percentage Total cost of claim 5 $ while the out-of-pocket cost to Crystal is Based on this data, the total cost to the insurance company is S How much did Crystal save by having her medical insurance policy? Assume that the hospital changed its payment policy to make the patient responsible for the difference between the hospital's room rate and the insurance company's responsibility (8350 per day versus $250 per day). By how much would Crystal's out-of-pocket cost for her hospital room change due in hospital billing? Crystal's costs would increase by $90. taly rnsts would increase by $300

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mastering Cloud Auditing A Comprehensive Guide To Learn Cloud Auditing

Authors: Cybellium Ltd, Kris Hermans

1st Edition

B0CHL8DYC7, 979-8861283809

More Books

Students also viewed these Accounting questions