Theresa Morgan of Boone, IA, age 55, recently suffered a stroke. Her total bill for this care was $125,500. After being discharged from the hospital, she spent 21 days in a nursing home at a cost of $270 per day. Theresa, who earns $3,700 per month, missed two months of work. Theresa had a health insurance plan through her employer. The policy had a $600 deductible and an 80/20 coinsurance clause with a $5,000 coinsurance cap. She had also accumulated 21 sick days (equivalent to one month) at work. Otherwise she had no long-term care or disability insurance. In total, Theresa missed 42 days of work. How much of Theresa's direct medical expenses was paid by her insurance policy?
Theresa Morgan of Boone, IA, age 55, recently suffered a stroke. Her total bill for this care was $125,500. After being discharged from the hospital, she spent 21 days in a nursing home at a cost of $270 per day. Theresa, who earns $3,700 per month, missed two months of work. Theresa had a health insurance plan through her employer. The policy had a $600 deductible and an 80/20 coinsurance clause with a $5,000 coinsurance cap. She had also accumulated 21 sick days (equivalent to one month) at work. Otherwise she had no long-term care or disability insurance. In total, Theresa missed 42 days of work. How much of Theresa's direct medical expenses was paid by her insurance policy?
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 23CE
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Theresa Morgan of Boone, IA, age 55, recently suffered a stroke. Her total bill for this care was $125,500. After being discharged from the hospital, she spent 21 days in a nursing home at a cost of $270 per day. Theresa, who earns $3,700 per month, missed two months of work. Theresa had a health insurance plan through her employer. The policy had a $600 deductible and an 80/20 coinsurance clause with a $5,000 coinsurance cap. She had also accumulated 21 sick days (equivalent to one month) at work. Otherwise she had no long-term care or disability insurance. In total, Theresa missed 42 days of work.
How much of Theresa's direct medical expenses was paid by her insurance policy?
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