the health care jimmys employer offers is a fee - for - service plan in which jimmy and his family must pay…

the health care jimmys employer offers is a fee - for - service plan in which jimmy and his family must pay for $12,500 in health related services in a calendar year before the insurance company begins to pay. jimmy and his family have several health related issues that demand $685.00 each month. if one of jimmys children were to become seriously injured at the end of the year, how much more would jimmy and his family need to pay before the insurance company begins to assume responsibility? a. $984.58 b. $4,280.00 c. $11,815.00 d. $14,417.92 please select the best answer from the choices provided

the health care jimmys employer offers is a fee - for - service plan in which jimmy and his family must pay for $12,500 in health related services in a calendar year before the insurance company begins to pay. jimmy and his family have several health related issues that demand $685.00 each month. if one of jimmys children were to become seriously injured at the end of the year, how much more would jimmy and his family need to pay before the insurance company begins to assume responsibility? a. $984.58 b. $4,280.00 c. $11,815.00 d. $14,417.92 please select the best answer from the choices provided

Answer

Explanation:

Step1: Calculate annual health - related payments

There are 12 months in a year. If they pay $685 per month, the total amount they pay in a year is $685\times12$. $685\times12 = 8220$

Step2: Calculate remaining amount to pay

The deductible (amount they must pay before insurance kicks in) is $12500$. We subtract the amount they've already paid ($8220$) from the deductible. $12500 - 8220=4280$

Answer:

B. $4,280.00