Bayside insurance offers two health plans. Under plan A, Giselle would have to pay the first $160 of her medical bills, plus 25% of the rest. Under plan B, Giselle would pay the first $200, but only 20% of the rest. For what amount of medical bills will plan B save Giselle money? Asume she has over $200 in bills
Giselle would save with plaan B if she had more than $____ in bills
Please help, I don't even know where to begin!
To determine the amount of medical bills under which Giselle would save money with plan B, we need to compare the costs under both plans A and B. Let's break it down:
Plan A:
- Giselle pays the first $160 of her medical bills.
- After paying the initial $160, she is responsible for 25% of the remaining amount.
Plan B:
- Giselle pays the first $200 of her medical bills.
- After paying the initial $200, she is responsible for 20% of the remaining amount.
To find the amount at which plan B saves Giselle money, we need to set up an equation. Let's assume the total medical bills amount is X:
For plan A, Giselle would pay $160 + 0.25(X-160).
For plan B, Giselle would pay $200 + 0.20(X-200).
To determine the threshold at which plan B saves Giselle money, we need to set these two equations equal to each other and solve for X:
160 + 0.25(X-160) = 200 + 0.20(X-200)
Now, let's simplify and solve for X:
160 + 0.25X - 40 = 200 + 0.20X - 40
0.25X - 0.20X = 200 - 160 + 40 - 40
0.05X = 40
Dividing both sides by 0.05, we get:
X = 800
Therefore, Giselle would save money with plan B if her medical bills exceed $800.