Question

Do The Math 11-2 Health Care Event Protection Christina Haley of Elko, Nevada, age 57, recently suffered a stroke. She was in intensive care for 3 days and was hospitalized for 10 more days. Her total bill for this care was $129,500. After being discharged from the hospital, she spent 25 days in a nursing home at a cost of $250 per day. Christina, who earns $4,500 per month, missed two months of work. Christina had a health insurance plan through her employer. The policy had a $1,000 deductible and an 80/20 coinsurance clause with a $2,000 coinsurance cap. She had also accumulated 21 sick days (equivalent to one month) at work. Otherwise she had no long-term care or disability income insurance. Round your answers to the nearest dollar a. How much of Christina's direct medical expenses was paid by her insurance policy? b. What did Christina have to pay for her nursing home care? c. How much income did Christina lose?

Answer 1

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Answer:

Solution (a) Expense paid for by insurance policy = Medical expense - Deductible - Coinsurance cap

=> 129,500 - 1,000 - 2,000 = 126,500

Solution (b)

Nursing home pay = 25* 250 = 6,250

Solution (c)

Since she accumulated 20 days of sick leave, she loses only 4,500