Chapter 11 Solutions

Chapter 11 Solutions - b. Marjorie paid $1,144 of the...

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Chapter 11 Solutions 1) a. Bernard’s major medical policy paid $50,000 , the episode limit. b. Bernard paid $32,951 . Which is the total of $1,000, his deductible; $2,000, his share of the coinsurance; and $29,951, the portion of the loss that exceeded the policy’s episode limit after Bernard’s deductible and coinsurance share were applied. 2) a. Michael will pay $2,500 . This total includes the $500 deductible and the $2,000 coinsurance cap (since 25 percent of $13,390 exceeds $2,000). b. Michael’s insurance will pay $11,390 ($13,890 – $2,500). 3) a. Marjorie paid $876 towards the hospital bill. The deductible amount.
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Unformatted text preview: b. Marjorie paid $1,144 of the physicians bills. This includes a $100 deductible plus 20 percent of the remaining expenses ($5,320-100) x 0.2 = $1,044+$100 = $1,144 ). c. Marjorie paid $7,380 for her recovery expenses after the hospital stay. This includes 100 percent of the first 20 days in the skilled nursing home ($300 x 20 = $6,000), $110 per day for the next 10 days in the nursing home ($110 x 10 = $1,100), and 20 percent of the cost of non-skilled home health care ($1,400 x 0.2 = $280). d. The total amount Marjorie paid was $9,420 ....
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