A health insurance policy pays 65 percent of physical therapy costs after a 200 deductible In contrast an HMO charges 15 per visit How much would a person save with the HMO had 10 sessions costing 50?

Answer 1

That doesn't sound too hard to figure out. $15 * 10 visits would cost $150 with the HMO. With the insurance, you would pay $200 for the first 4 visits and .65 * $50 * 11 for the other 11 visits for a total of $557.50. Actually, the above math is incorrect. I agree that the HMO would cost $150 for 10 visits at $15 per visit. The Insurance with the deductible would work as follows: $200 deductible would be met after the 4th visit at $50 per visit, there would then be 6 visits remaining at a PATIENT liability of only 35% since the insurance covers 65% of the cost, in other words the Patient has a 35% co-insurance which would cost $17.50 per visit times the 6 remaining visits = $105. So the total cost of 10 visits with the insurance would be $200+105=$305 Subtract the HMO cost from the Insurance cost - $305-150=$155 So the HMO saves the patient $155 over the cost of the Insurance with a deductible. The question is what is the difference in the annual price for the HMO and the Insurance? You may save on the visits but the total cost of the policies will be different.