bayside insurance offers two health plans.Under plan A, Gisselle would have to pay the first 110 dollars of her, plus 25% of the rest. Under plan b, giselle would pay the first 230dollars , but only 20 % of the rest.for what amount of medical bills will plan b save gissselle money? assume she has over 230 dollars worth of bills. Gisselle would save with plan bif she had more then $ -in bills.
Let X be the bill total amount needed for the out-of-pocket net costs to be equal.
110 + 0.25X = 230 + 0.20 X
120 = 0.05 X
Solve for X
If total costs exceed X, plan B is the better deal.
To determine the amount at which Plan B would save Gisselle money, we need to compare the costs of both plans for Gisselle.
Let's break down the costs for each plan:
Plan A:
- Gisselle pays the first $110.
- After that, she pays 25% of the remaining amount.
Plan B:
- Gisselle pays the first $230.
- After that, she pays 20% of the remaining amount.
To calculate the point at which Plan B becomes more cost-effective, we'll set up an equation and solve for the bill amount:
110 + 0.25(x - 110) = 230 + 0.20(x - 230)
Let's solve this equation step by step:
110 + 0.25x - 27.5 = 230 + 0.20x - 46
Combine like terms:
0.25x - 27.5 = 0.20x - 46
Subtract 0.20x from both sides:
0.05x - 27.5 = -46
Add 27.5 to both sides:
0.05x = -18.5
Divide by 0.05:
x = -18.5 / 0.05
x = -370
The bill amount at which Plan B saves Gisselle money is any amount over $370. So, Gisselle would save with Plan B if she had more than $370 in medical bills.