Carol Byrd gets a student rate of $30.00 a month. There is a $250 deductible; but no coinsurance payment. She recently received treatment for a covered condition. The bill was $2,300.00. Carol's insurance company provided payment of 80% of the bill less the deductible.
What was the company's payment?
What was Carol's total cost (ignoring the monthly premium)?
company paid .80(2300)-250
Carol paid 250+.20(2300)
WRONG
To calculate the company's payment, we need to determine the amount covered by the insurance after applying the deductible.
Step 1: Calculate the amount covered after the deductible:
The bill was $2,300.00, and there is a $250 deductible. Therefore, after applying the deductible, the amount covered by the insurance is $2,300.00 - $250 = $2050.00.
Step 2: Calculate the insurance payment:
The insurance company provides payment of 80% of the covered amount. So, the insurance payment is 80% of $2050.00, which is $2050.00 * 0.80 = $1,640.00.
Therefore, the company's payment is $1,640.00.
To calculate Carol's total cost, we must subtract the company's payment from the total bill.
Step 1: Calculate the amount remaining after insurance payment:
The total bill was $2,300.00, and the company's payment was $1,640.00. Therefore, the amount remaining after insurance payment is $2,300.00 - $1,640.00 = $660.00.
Therefore, Carol's total cost, ignoring the monthly premium, is $660.00.
To calculate the insurance company's payment and Carol's total cost, we need to follow a few steps:
Step 1: Calculate the amount after deducting the deductible
Since Carol has a $250 deductible, we subtract this amount from the total bill of $2,300 to determine the amount that is eligible for coverage.
$2,300 - $250 = $2,050
Step 2: Calculate the insurance company's payment
The insurance company covers 80% of the eligible amount, which is $2,050. To find out the payment amount, we multiply the eligible amount by 80% (or 0.8).
$2,050 x 0.8 = $1,640
Therefore, the insurance company's payment was $1,640.
Step 3: Calculate Carol's total cost
Carol's total cost is the remaining amount after the insurance company's payment. We subtract the insurance payment from the total bill.
$2,300 - $1,640 = $660
Therefore, Carol's total cost, ignoring the monthly premium, was $660.