Problem $11-4$ Calculating the Cost of Health Care Coverage with and without a Stop$-$Loss Policy $[$LO$11-3]$

Sarah's comprehensive major medical health Insurance plan at work has a deductible of $$600.$ The policy pays $85$ percent of any

amount above the deductible. While on a hiking trip, she contracted a rare bacterlal disease. Her medical costs for treatment, Including

medicines, tests, and a slx$-$day hospltal stay, totaled $$9,030.$ A frlend told her that she would have pald less if she had a policy with a

stop$-$loss feature that capped her out$-$of$-$pocket expenses at $$3,800.$ The policy with the stop$-$loss feature has the same deductlble

and colnsurance requirement as Sarah's current policy.

Determine which policy would have cost Sarah less and by how much.

Note: Round your Intermedlate calculations and final answer to $2$ decimal places.

Current policy

Stop$-$loss feature

No difference In Sarah's cost for this clalm.