The carter family has health insurance coverage that covers 90% of out-of-hospital expenses once a deductible of $300 (per person) is paid. chris carter had a serious illness that required hospitalization, with total medical bills amounting to $55,000. assume there was a stop-loss provision of $5,000. how much will the carter family pay?
a. $6,000
b. $5,770
c. $5,470
d. $5,240
e. $5,000

E. $5,000

Explanation:

In the given case, as one time deductible fee = $300

Thus, this will be deducted from the annual bill of $55,000

Effective bill amount = $55,000 - $300 = $54,700

Non-covered amount of bill = $54,700 10% = $5,470

Now, total uncovered amount = $5,470 + $300 = $5,770

We see that this amount exceeds the stop loss provision amounting $5,000. Thus, the amount to be paid by Carter shall be: $5,000 only.

The remaining amount shall be paid by the insurance company.

answer; i believe the correct answer is (sales promotion;