Sarahs comprehensive major medical health insurance plan at work has a deductible of $750. The policy pays

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Sarah’s comprehensive major medical health insurance plan at work has a deductible of $750. The policy pays 85% of any amount above the deductible. While on a hiking trip, she contracted a rare bacterial disease. Her medical costs for treatment, including medicines, test, 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.

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Focus On Personal Finance

ISBN: 9780077861742

5th Edition

Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart

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