Bayside insurance offers two health plans. Under plan A, Giselle would have to pay the first $140 of her medical bills, plus 40% of the rest. Under plan B, Giselle would pay the first $160, but only 30% of the rest. For what amount of medical bills will plan B save Giselle money? Asume she has over $160 in bills
To find out when Plan B will save Giselle money compared to Plan A, we need to calculate the point at which the total cost under Plan B becomes lower than the total cost under Plan A.
Let's assume the amount of Giselle's medical bills is represented by x.
Under Plan A:
Giselle pays the first $140, and then 40% of the remaining balance.
So, the cost under Plan A can be represented as: $140 + 40% of (x - $140).
Under Plan B:
Giselle pays the first $160, and then 30% of the remaining balance.
So, the cost under Plan B can be represented as: $160 + 30% of (x - $160).
To find the point where Plan B becomes more cost-effective than Plan A, we need to set up an equation and solve for x:
140 + 0.4(x - 140) > 160 + 0.3(x - 160)
Let's simplify the equation step by step:
140 + 0.4x - 56 > 160 + 0.3x - 48
84 + 0.4x > 160 + 0.3x
0.4x - 0.3x > 160 - 84
0.1x > 76
x > 76 / 0.1
x > 760
Therefore, Plan B will save Giselle money when her medical bills exceed $760.