A health insurance policy pays 65 percent of physical therapy costs after a 200 deductible In contrast an HMO charges 15 per visit How much would person save with the had 10 sessions costing 50?
To determine the saving with the HMO compared to the health insurance policy, let's calculate the cost for each option.
Health Insurance Policy:
1. Calculate the total physical therapy costs:
10 sessions x 50$ per session = $500
2. Calculate the deductible:
$200 deductible
3. Calculate the amount covered by insurance:
(65% of $500) - $200 deductible
= $325 - $200
= $125
4. Cost to the person with the health insurance policy:
$500 - $125
= $375
HMO Charges:
1. Calculate the total charges by HMO:
10 sessions x $15 per visit
= $150
Saving:
To calculate the savings with the HMO, subtract the HMO charges from the cost with the health insurance policy.
$375 (Cost with Health insurance policy) - $150 (cost with HMO)
= $225
The person would save $225 by opting for the HMO instead of the health insurance policy for 10 physical therapy sessions costing $50 each.
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