• Using the plan information provided, answer the following questions about your out of pocket costs for health care services. Assume the STANDARD rules for calculating expenses (i.e. the deductible applies to everything. Also assume that any charges referred to are the amount that the provider and the health plan agreed to)

HAPPY HEALTH PLAN

Premium: $250.00/month Deductible: $500.00

Physician Services: $20 Hospital Services: 20%

a) If on your first day of coverage instead of visiting your doctor, you are admitted to the hospital for surgery and you receive a bill from the hospital for $5,000, how much should you pay the hospital?

b) Assume instead of entering the hospital on day one of your coverage, you had several visits with your physician (for which you were billed $750.00) before you were admitted to the hospital for surgery. How much would you pay for your hospital stay now?