Question

Hep Save & Exit Problem 9-5 (L09.2) Stephanie was injured in a car accident and was rushed to the emergency room. She received stitches for a facial wound and treatment for a broken finger. Under Stephanie's PPO plan, emergency room care at a network hospital is 80 percent covered after the member has met an annual deductible of $360. Assume that Stephanie went to a hospital within her PPO network. Her total emergency room bill was $1,110. a. What amount did Stephanie have to pay? Personal cost b. What amount did the PPO cover? PPO cost

Answer 1

a.

the amount Stephanie has to pay using the equation as shown below:

Amount = Total Bill * ( 1 – Percentage of coverage by PPO)

               = $1,110 * ( 1 – 80%)

               = $222

Hence, the amount Stephanie has to pay is $222.

b.

Compute the amount PPO would cover using the equation as shown below:

Amount = Total Bill * Percentage of coverage of PPO

              = $1,110 * 80%

              = $888

Hence, the PPO Cover is $888.