### Question details

BUSN380 Week 6 TCO 4 Problem Set 6 - Home, Automobile, Health, & Life Insurance 2
\$ 15.00

Current policy less deductible: \$8,893 – \$750 = \$8,143

If policy pays 85% then Sarah must pay 15%, so \$8,143 x .15 =  \$1,221.45

Add the (deductible) \$750 Total paid = \$1,971.45.

Sarah’s friend was wrong

With stop-loss, Sarah would have paid the first \$3,000 instead of the \$1,971.45 she paid with her current policy. Her current policy costs less by \$1,028.55 (\$3,000 – \$1,971.45).

4The Kelleher family has health insurance coverage that pays 80 percent of out-of-hospital expenses after a \$500 deductible per person. If one family member has doctor and prescription medication expenses of \$1,100, what amount would the insurance company pay?

Ans.

Out-of-hospital related costs (prescription medication expenses) = \$1100.00
Deductible = \$500
Insurance Coverage = 80%
So,
\$1100 – \$500 = \$600
.80 x 600 = \$480

### Homeworkhelp

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• BUSN380 Week 6 TCO 4 Problem Set 6 - Home, Automobile, Health, & Life Insurance
\$15.00

Current policy less deductible: \$8,893 –

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