Question

consider a relatively simple health insurance plan with the following provisions. office visits require a co-payment of \\$35. emergency room visits have a \\$300 co-payment. surgical operations have a \\$1,900 deductible (the first \\$1,900 is paid out of pocket). the monthly premium is \\$380. during a one-year period, somebody insured by this health insurance has the expenses shown to the right. complete parts (a) and (b) below.

expenses:
feb. 18: office visit, total cost: \\$175
mar. 20: emergency room, total cost: \\$580
apr. 23: office visit, total cost: \\$175
may 14: surgery, total cost: \\$7,000
july 1: office visit, total cost: \\$175
sept. 23: emergency room, total cost: \\$840

a. determine the persons health care expenses for the year with the insurance policy.
the persons health care expenses with the insurance policy are \\$___
(type a whole number.)

b. determine the persons health care expenses for the year without the insurance policy.
the persons health care expenses without the insurance policy are \\$___
(type a whole number.)

Explanation:

Calculate total expenses without insurance

$$ \text{Total Cost} = 175 + 580 + 175 + 7000 + 175 + 840 = 8945 $$

Calculate out-of-pocket costs with insurance

$$
LATEXBLOCK0
$$

Calculate total expenses with insurance including premiums

$$
LATEXBLOCK1
$$

Answer:

Question 1

The person's health care expenses with the insurance policy are $ <blank>7165</blank>

Question 2

The person's health care expenses without the insurance policy are $ <blank>8945</blank>