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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## This note was uploaded on 08/27/2008 for the course FIN 200 taught by Professor Delcorral during the Spring '08 term at Loyola New Orleans.

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