Question

Mary Cardenas had a policy with a $500 deductible, which paid 80% of her covered charges less deductible. She had medical expenses of $12,500. Calculate:

the company's payment

Mary's 20% copayment

Mary's total cost

Answer 1

First, you take the $500 off the top.  The take 80% off $12000 so the company's share is $9600, Mary's copay is $2400, and her total cost is $2900 when you add the deductible back in.

Answer 2

Answer:

Given is - Mary Cardenas had a policy with a $500 deductible, which paid 80% of her covered charges less deductible.

She had medical expenses of $12,500.

The company's payment:

The company will pay 80% of the total minus the policy with a $500 deductible.

$\frac{80}{100}\times(12500-500)$

=> $\frac{80}{100}\times(12000)$

= $9600

Mary's 20% co-payment:

She will pay 20% of total expenses minus her $500 deductible.

$\frac{20}{100}\times(12500-500)$

=> $\frac{20}{100}\times(12000)$

= $2400

Mary's total cost:

Mary's total cost will be = $2400+500=2900$ dollars