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4 Sarah’s comprehensive major medical health insurance plan at work
has a deductible of $750. The policy pays 85 percent of any amount
above the deductible. While on a hiking trip, she contracted a rare
bacterial disease. Her medical costs for treatment, including medicines,
tests, and a six-day hospital stay, totaled $8,893.
A friend told her that she would have paid less if she had a policy with a
stop-loss feature that capped her out-of-pocket expenses at $3,000.
Was her friend correct? Show your computations. Then determine which
policy would have cost Sarah less and by how much.
5 The Kelleher family has health insurance coverage that pays 80
percent of out-of-hospital expenses after a $500 deductible per person. If
one family member has doctor and prescription medication expenses of
$1,100, what amount would the insurance company pay?
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BUSN 380 Week 6 Quiz
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1. (TCO 4) If a home inspection reveals defective house wiring, then this
is an example of a (Points : 1)
threat.
peril.
risk.
speculation.
hazard.