Question
The article writes: Between 1997 and 2017, monthly deductibles under the public plain increased by 133%, from $8.33 to $19.45 [and] the coinsurance rate for
The article writes: "Between 1997 and 2017, monthly deductibles under the public plain increased by 133%, from $8.33 to $19.45 [and] the coinsurance rate for deductibles increased from 25% to 34.8%"
A 'deductible' is how much an insured person needs to pay before the insurance kicks in. 'Co-insurance' is what % of the cost of an insured item the insured person needs to pay. For example, suppose Sam's health insurance has a deductible of $20, and co-insurance of 25%. If Sam's health care bill is $100, she would have to pay the first $20 of that $100, plus 25% of the remaining $80. The insurance would pay the rest. In this case, Sam would end up paying ($20 + 25% x $80) = $40, or 40% of the health care bill.
According to the Patented Medicine Price Index 1(and Canada's CPI 2 for 2016-2017), a patented medicine that cost $100 in 1997 would cost about $103.73 in 2017.
Suppose Sam lives in Quebec, and her monthly drug costs are $100 in 1997, and $103.73 in 2017. Using information from the quotation above, what % of her drug costs would she have to pay in 1997? What % of her drug costs would she have to pay in 2017?Show your work.
% of drug costs Sam has to pay in 1997 (to two decimal points, e.g. 10.25%) : _____________
% of drug costs Sam has to pay in 2017 (to two decimal points) : _____________
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