Module 5 Practice Problems

J. Zachary Klingensmith

For problems 5.1-5.4, use the following insurance coverage. Assume a copay must be paid at each visit. For each calculate the total patient responsibility for the year and the total insurance company responsibility for the year.

  • $50 copay
  • $1,000 deductible
  • 90/10 coinsurance after deductible

Problem 5.1

  • January 30: $300
  • March 18: $100
  • May 7: $200
  • October 10: $250
  • December 4: $350

Answer: You pay $1,200, they pay $0

Problem 5.2

  • April 4: $50
  • December 8: $15,000

Answer: You pay $2,495, they pay $12,555

Problem 5.3

  • January 8: $500
  • February 4: $700
  • April 30: $600
  • June 3: $900
  • August 3: $1,500
  • September 16: $700
  • November 30: $1,200
  • December 15: $900

Answer: You pay $1,960, they pay $5,040.

Problem 5.4

  • February 6: $200
  • June 12: $500
  • September 9: $300
  • November 1: $200
  • December 10: $400

Answer: You pay $1,285, they pay $315.

For problems 5.5-5.7, determine which of the following plans is the best (anticipated) option for each person.

Gold Plan

  • $350/month
  • $100 deductible
  • No coinsurance

Silver Plan

  • $200/month
  • $1,000 deductible
  • 90/10 coinsurance after deductible

Bronze Plan

  • $50/month
  • $2,500 deductible
  • 80/20 coinsurance after deductible

Problem 5.5: Antwon expects to have around $500 in medical bills for the year.

Answers: 4,300; 2,900; 1,100 (pick bronze)

Problem 5.6: Bridget expects to have around $3,500 in medical bills for the year.

Answers: 4,300; 3,650; 3,300 (pick bronze)

Problem 5.7: Chad expects to have around $10,000 in medical bills for the year.

Answers: 4,300; 4,300; 4,600 (pick gold)

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The Math of Money - Archived Copyright © by J. Zachary Klingensmith is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

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