Answer each of the following. If you are typing, be sure to save this in Rich Text
Format, .rtf.
1) Health Insurance. (This section is worth a total of 25 points)
The company you work for offers a choice of three diff
...
Answer each of the following. If you are typing, be sure to save this in Rich Text
Format, .rtf.
1) Health Insurance. (This section is worth a total of 25 points)
The company you work for offers a choice of three different policies. Here are the details.
Coinsurance is the percentage of bills you pay after the deductible.
Your employer will be paying 70% of the premium.
Insurance
Company
Deductible Coinsurance Office Visit Annual
Premium
AAA+ $2500 20% $25 $1883
Health
Today
$500 20% $25 $2343.36
Best
Insurance
$5000 20% 20% after
deductible
$821.80
a) Compare the Companies. Answer each of the following.
Which company has the lowest deductible (money you must pay on bills before
the insurance will pay)?
Lowest deductible is Health Today ($500)
Which company has the best Office Visit quote?
While the $5000 deductible is in effect it’s Best Insurance, after that you pay 20%
of the cost
Which company has the lowest annual premium?
Lowest annual premium is Best Insurance
b) Now, let’s try “what if”. What if you had medical bills for $10,000 for a minor surgery?
What would each of the insurance policies pay if you had not yet paid any deductible?
Remember that 20% is your part (coinsurance) so the insurer’s percent is 80% for the
first formula. Show how you are getting the answer.
Formulas:
Insurer’s part of Medical Bill = (Bill – deductible) (80%)
Your part of medical bill = Total bill – Insurers part
AAA+
Insurer’s Part of bill = (10000 – 2500 ) * 80/100 = $6000
Your part of bill = 10000 – 2000 = $8000
Health Today
Insurer’s Part of bill = (10000 – 500 ) * 80/100 = $7600
Your part of bill = 10000 – 7600 = $2400
[Show More]