Chapter 11 Homework Problems.docx

# Chapter 11 Homework Problems.docx - Chapter 11 Homework...

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Chapter 11 Homework Problems 1. Calculating the Effect of Inflation on Health Care Costs . As of 2008, per capita spending on health care in the United States was about \$8,000. If this amount increased by 5 percent a year, what would be the amount of per capital spending for health care in 7 years (2015)? 8000x1.05=8400x1.05=8820x1.05=9261x1.05=9724.05x1.05=10210.25x1.05=10720.77x1.05 = \$11256.80 Per year 2. Calculating the Amount of Reimbursement from an Insurance Company . The Kelleher family has health insurance coverage that pays 80 percent of out-of-hospital expenses after a \$1000 deductible per person. If one family member has doctor and prescription medication expenses of \$2,100, what amount would the insurance company pay? 2100-1000=1100x0.80= \$880 3. Comparing the Costs of a Regular Health Insurance Policy and an HMO . A health insurance policy pays 60 percent of physical therapy cost after a \$200 deductible. In contrast, an HMO charges \$15 per visit for physical therapy. How much would a person save with the HMO if he or she had 12 physical therapy sessions costing \$50 each? To be able to fully answer this question, you must know the full cost of each physical therapy session. Without knowing the full cost, I can only tell you the saving they will have based on the deductible vs the co-pay. 200-15=185x12= \$2220 would be saved on the deductible by having HMO. 4 Calculating the Cost of Health Care Coverage With and Without a Stop-Loss Policy . Sarah’s comprehensive major medical health insurance plan at work has a deductible of \$1000. The policy pays 85 percent of any amount above the deductible. While on a hiking trip, she contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and a six-day hospital stay, totaled insurance paid 6709.05 she paid 2183.95 \$8,893. A friend told her that she would have paid less if she had a policy with a stop-loss feature that

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