Lucia, a sales representative, is 24 years old and has owned a major medical insurance policy for three years. The policy, which she purchased through her job, provides the following coverage:

	a $2,000,000 lifetime limit
	a $500 deductible and 80% coinsurance clause
	internal limits of $500 per day for a semi-private room and board, $5,000 per occurrence for x-rays, prescription drugs, and other medical expenses, and a $25,000 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 policys stated internal limit, the hospital agrees to reduce the room rate to the policys internal limit.

Last month, Lucia was injured was grazed by a car while crossing the street. She spent 2 days in the hospital in a room that cost $750 per day, incurred $4,000 for other medical expenses, and $22,000 in surgical expenses.

Given these claim costs, complete the following table and answer the related questions

	Policy Limit	Total Claim
Hospital charges	$500 per day
Surgery costs
Other medical costs
Rehabilitation and therapy costs
Deductible
Co-insurance percentage	%
Total cost of claim

Based on this data, the total cost to the insurance company is $_________ , while the out-of-pocket cost to Lucia is $_______.

How much did Lucia 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 hospitals room rate and the insurance companys responsibility ($750 per day versus $500 per day). By how much would Lucias out-of-pocket cost for her hospital room change due in hospital billing ?

A. Lucias costs would decrease by $500.

B. Lucias costs would increase by $300.

C. Lucias costs would increase by $500.