Answer:
a) $2498.6
b) No
Explanation:
Given that:
Deductible = $850
Medical cost for treatment = $9,093
Policy deductible percentage = 80% = 0.8
a)
Coinsurance = (Medical cost for treatment - deductible) x (1 - policy deductible percentage)
Substituting values:
Coinsurance = ($9093 - $850) x (1 - 0.8) = $8243 x 0.2 = $1648.6
The total amount Becky would pay under the current policy = Deductible + Coinsurance = $850 + $1648.6 = $2498.6
b) No, since beck paid $2498.6 instead of a policy of $4000, she saved $1501.4 (i.e $4000 - $2498.6)