select the correct answer.\nstephanie belongs to a ppo that has a $1,000 deductible. the deductible applies…

select the correct answer.\nstephanie belongs to a ppo that has a $1,000 deductible. the deductible applies only if stephanie meets with doctors outside her network. there is no co - payment. stephanie incurred a bill of $2,000 when she met with an out - of - network specialist for a thyroid problem. she owes $1,400 out of pocket for the bill because the ppo will pay $600 after stephanie’s deductible. what is the co - insurance clause of the ppo that stephanie belongs to?\na. 50/50\nb. 60/40\nc. 70/30\nd. 80/20

select the correct answer.\nstephanie belongs to a ppo that has a $1,000 deductible. the deductible applies only if stephanie meets with doctors outside her network. there is no co - payment. stephanie incurred a bill of $2,000 when she met with an out - of - network specialist for a thyroid problem. she owes $1,400 out of pocket for the bill because the ppo will pay $600 after stephanie’s deductible. what is the co - insurance clause of the ppo that stephanie belongs to?\na. 50/50\nb. 60/40\nc. 70/30\nd. 80/20

Answer

Explanation:

Step1: Understand the problem

We know Stephanie's deductible is $1000, she paid $1400 out - of - pocket, and the insurance pays $600 after the deductible. We need to find the total bill (insurance clause amount). Let the total bill be (x).

Step2: Set up the equation

The amount Stephanie pays out - of - pocket is the deductible plus the amount she pays after the deductible. But we also know that the insurance pays $600 after the deductible. So the total bill (x=) deductible + amount Stephanie pays after deductible+ amount insurance pays after deductible. We know that the amount she pays out - of - pocket is $1400, and the deductible is $1000, so the amount she pays after deductible is (1400 - 1000=400). Then the total bill (x = 1000+400 + 600).

Step3: Calculate the total bill

(1000+400+600=2000)? Wait, no, wait. Wait, the problem is to find the co - insurance clause? Wait, maybe I misread. Wait, the problem says "What is the co - insurance clause of the PPO that Stephanie belongs to?". Wait, let's re - analyze.

Wait, the deductible is $1000. She owes $1400 out - of - pocket. The insurance pays $600 after the deductible. Let's denote the co - insurance percentage. Let the amount after deductible be (A). Then Stephanie pays a portion of (A) and insurance pays the rest. We know that Stephanie's out - of - pocket is deductible + (her share of (A)) = 1400. Deductible is 1000, so her share of (A) is (1400 - 1000 = 400). Insurance pays 600 of (A). So (A=400 + 600=1000)? No, that can't be. Wait, maybe the total bill is deductible + (amount Stephanie pays after deductible)+(amount insurance pays after deductible). Wait, no, the co - insurance clause is about the percentage. Wait, maybe the total bill is (1400 + 600=2000)? No, the options are 5050, 6040, 7030, 8020. Wait, maybe I made a mistake. Wait, let's re - read the problem.

"Stephanie belongs to a PPO that has a $1,000 deductible. The deductible applies only if Stephanie meets with doctors outside her network. Stephanie incurred a bill of $2,000 when she met with an out - of - network specialist for a thyroid problem. She owes $1,400 out of pocket because the PPO will pay $600 after Stephanie’s deductible. What is the co - insurance clause of the PPO that Stephanie belongs to?"

Wait, total bill after deductible is (2000 - 1000 = 1000). She pays (1400-1000 = 400) of the after - deductible amount, and insurance pays 600. So the co - insurance ratio: her share is (400), insurance share is (600). So the ratio of her share to the after - deductible amount is (\frac{400}{1000}=0.4), and insurance is (\frac{600}{1000}=0.6). But the options are 5050, 6040, 7030, 8020. Wait, maybe the total bill is different. Wait, maybe the bill is (x), deductible is 1000, so amount after deductible is (x - 1000). Stephanie pays (0.4(x - 1000)) (since her share is 40% if insurance is 60%) and deductible 1000, so total out - of - pocket is (1000+0.4(x - 1000)=1400). Let's solve for (x):

(1000+0.4x-400 = 1400)

(0.4x+600 = 1400)

(0.4x=800)

(x = 2000). No, the options are not 2000. Wait, maybe the problem is about the co - insurance clause in terms of the formula. Wait, maybe the co - insurance clause is calculated as (amount insurance pays)/(total bill - deductible) or something else. Wait, the options are 5050, 6040, 7030, 8020. Let's check the numbers.

Wait, maybe the total bill is (1400\div(1 - r)+1000), where (r) is the insurance's co - insurance rate. And insurance pays (r\times(1400\div(1 - r))=600). Let's solve (r\times(1400\div(1 - r)) = 600)

(1400r=600(1 - r))

(1400r = 600-600r)

(1400r + 600r=600)

(2000r = 600)

(r = 0.3), so her rate is (0.7). Then the total bill after deductible is (1400 - 1000=400) (her share after deductible), so total bill after deductible is (400\div0.7\approx571.43), total bill is (1000 + 571.43\approx1571.43), no.

Wait, maybe the options are related to the co - insurance clause calculation as (her out - of - pocket - deductible) and insurance payment. Wait, the options are 5050, 6040, 7030, 8020. Let's see the digits. 1400 - 1000 = 400, 600. 400 and 600. 400/600 = 2/3, no. Wait, maybe the problem is written wrong, but let's assume that the total bill is (x), deductible (d = 1000), her payment (p = 1400), insurance payment (i = 600). Then (x=d + p - d+i)? No, (x=d+(p - d)+i= p + i=1400 + 600 = 2000). But the options are not 2000. Wait, maybe the bill is $8020? No. Wait, maybe the co - insurance clause is calculated as (her payment after deductible)/(insurance payment after deductible). Her payment after deductible is (1400 - 1000 = 400), insurance payment after deductible is 600. So 400/600 = 2/3, but the options are 5050 (50/50), 6040 (60/40), 7030 (70/30), 8020 (80/20). 400:600 = 2:3, no. Wait, maybe I got the numbers reversed. Insurance payment is 600, her payment after deductible is 400. So 600:400 = 3:2, which is 60:40 (since 3/5 = 0.6, 2/5 = 0.4). So the co - insurance clause is 60/40, so the answer is B. 6040.

Answer:

B. 6040