Assignment: Open Response 3 (50 Points)
Answer each of the following. If you are typing, be sure to save this in Rich Text
Format, .rtf.
1) Health Insurance. (This section is worth a total of 25 points)
The company you work for offers a choice of three different policies. Here are the details.
Coinsurance is the percentage of bills you pay after the deductible.
Your employer will be paying 70% of the premium.
Insurance Deductible Coinsurance Office Visit Annual
Company Premium
AAA+ $2500 20% $25 $1883
Health $500 20% $25 $2343.36
Today
m
Best $5000 20% 20% after $821.80
er as
Insurance deductible
co
eH w
a) Compare the Companies. Answer each of the following.
o.
Which company has the lowest deductible (money you must pay on bills before
the insurance will pay)?
rs e
ou urc
Lowest deductible is Health Today ($500)
Which company has the best Office Visit quote?
o
While the $5000 deductible is in effect it’s Best Insurance, after that you pay 20%
aC s
of the cost
vi y re
Which company has the lowest annual premium?
Lowest annual premium is Best Insurance
b) Now, let’s try “what if”. What if you had medical bills for $10,000 for a minor surgery?
ed d
What would each of the insurance policies pay if you had not yet paid any deductible?
ar stu
Remember that 20% is your part (coinsurance) so the insurer’s percent is 80% for the
first formula. Show how you are getting the answer.
is
Formulas:
Insurer’s part of Medical Bill = (Bill – deductible) (80%)
Th
Your part of medical bill = Total bill – Insurers part
AAA+
sh
Insurer’s Part of bill = (10000 – 2500 ) * 80/100 = $6000
Your part of bill = 10000 – 2000 = $8000
Health Today
Insurer’s Part of bill = (10000 – 500 ) * 80/100 = $7600
Your part of bill = 10000 – 7600 = $2400
This study source was downloaded by 100000823518935 from CourseHero.com on 08-17-2021 08:33:02 GMT -05:00
https://www.coursehero.com/file/21724447/304/
Answer each of the following. If you are typing, be sure to save this in Rich Text
Format, .rtf.
1) Health Insurance. (This section is worth a total of 25 points)
The company you work for offers a choice of three different policies. Here are the details.
Coinsurance is the percentage of bills you pay after the deductible.
Your employer will be paying 70% of the premium.
Insurance Deductible Coinsurance Office Visit Annual
Company Premium
AAA+ $2500 20% $25 $1883
Health $500 20% $25 $2343.36
Today
m
Best $5000 20% 20% after $821.80
er as
Insurance deductible
co
eH w
a) Compare the Companies. Answer each of the following.
o.
Which company has the lowest deductible (money you must pay on bills before
the insurance will pay)?
rs e
ou urc
Lowest deductible is Health Today ($500)
Which company has the best Office Visit quote?
o
While the $5000 deductible is in effect it’s Best Insurance, after that you pay 20%
aC s
of the cost
vi y re
Which company has the lowest annual premium?
Lowest annual premium is Best Insurance
b) Now, let’s try “what if”. What if you had medical bills for $10,000 for a minor surgery?
ed d
What would each of the insurance policies pay if you had not yet paid any deductible?
ar stu
Remember that 20% is your part (coinsurance) so the insurer’s percent is 80% for the
first formula. Show how you are getting the answer.
is
Formulas:
Insurer’s part of Medical Bill = (Bill – deductible) (80%)
Th
Your part of medical bill = Total bill – Insurers part
AAA+
sh
Insurer’s Part of bill = (10000 – 2500 ) * 80/100 = $6000
Your part of bill = 10000 – 2000 = $8000
Health Today
Insurer’s Part of bill = (10000 – 500 ) * 80/100 = $7600
Your part of bill = 10000 – 7600 = $2400
This study source was downloaded by 100000823518935 from CourseHero.com on 08-17-2021 08:33:02 GMT -05:00
https://www.coursehero.com/file/21724447/304/
