Physical Therapy Costs: Health Insurance vs. HMO - Which is Cheaper?

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.