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?
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.