Question

Sally Jones had a policy with a $250 deductible which paid 80% of her covered charges less deductible. She had medical expenses of $18,240.00. What is the insurance company's payment?

Answer 1

Answer

Find out the  insurance company's payment .

To proof

Deductible

The deductible is the amount of money you will pay in an insurance claim before the company starts paying you insurance coverage .

As given

Sally Jones had a policy with a $250 deductible which paid 80% of her .covered charges less deductible

She had medical expenses of $18,240.00.

Amount becomes after deducting deductible = $18,240 -  $250

                                                                                    = $17990

80 % is written in the decimal form

$= \frac{80}{100}$

now 80% of the Amount after deducting deductible

$= \frac{80\times 17990}{100}$

= $ 14392

Therefore $ 14392 is the insurance company's payment .

Hence proved

Answer 2

Correct Answer: $14,392