Question

There is a 1 percent chance that you will have healthcare bills of $100,000, a 19 percent chance that you will have healthcar
0 0
Add a comment Improve this question Transcribed image text
Answer #1

. Answer - ist case it pacent chance that you will have healthcare bills $100,000 outo poccat Sopenses in medical Bill = 5000Annual Doemium = 1900 X1164 E 2204 Total Expected Expense in case of a Insurance policy with sooo deductible 9 1300+2204 =350

Add a comment
Know the answer?
Add Answer to:
There is a 1 percent chance that you will have healthcare bills of $100,000, a 19...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • There is a 1 percent chance that you will have healthcare bills of $100,000, a 19...

    There is a 1 percent chance that you will have healthcare bills of $100,000, a 19 percent chance that you will have healthcare bills of $10.000. a 60 percent chance that you will have healthcare bills of $500, and a 20 percent chance that you will have healthcare bills of SO. a Suppose now you have a policy with a $5,000 deductible. What will your expected out-of-pocket spending be? What will your expected insurance benefits be Assuming that the premium...

  • There is a 1 percent chance (0.01) that you will have a medical bill of $100,000;...

    There is a 1 percent chance (0.01) that you will have a medical bill of $100,000; 19 percent chance (0.19) that you will have a medical bill of $10,000; 60 percent chance (0.6) that you will have a medical bill of $500; and 20 percent chance (0.2) that you will have a medical bill of $0. A) What is your expected medical spending, without any insurance? B) If you have complete insurance (i.e. zero deductible, zero copay), what is your...

  • Suppose a large employer contrads with an insurer to provide health insurance coverage or workers compensation...

    Suppose a large employer contrads with an insurer to provide health insurance coverage or workers compensation coverage for its employees. The employer (the insured) really setf-insures, and the insurer is a third party administrator. Any benefits paid by the insurer to the employees is reimbursed by the employer Theemployer may buy excess coverage, such as coveragefor annual health benefits exceoding $10 milion The insurer and the employer can negotiate the premium for the policy at very low transaction costs. Wo...

  • A newspaper columnist, writing about the US health care system, concluded: "US health care costs are...

    A newspaper columnist, writing about the US health care system, concluded: "US health care costs are rising so rapidly because a much larger percentage of Americans now have health insurance to pay for their medical bills. The increase in health insurance coverage in the US resulted in a decline in out of pocket spending by individuals from roughly 65 percent to roughly 20 percent from 1950 to 2016. This change led to a 500 percent increase in real per capita...

  • You have purchased a $25,000 Employee Theft policy with $500 deductible. During the coverage period you...

    You have purchased a $25,000 Employee Theft policy with $500 deductible. During the coverage period you find out that one of your employees has stolen a $30,000 item from your company. How much would the insurance company pay you?

  • You have been offered theft insurance for your new bike, for which you paid $400. The...

    You have been offered theft insurance for your new bike, for which you paid $400. The insurance policy will cover you for 1 year. The premium is $20. You have a deductible of $80, so that if the bike is stolen you get a refund of $(400 - 80) = $320. According to data for your area, the probability that a bicycle is stolen in any given year is 10%. a. List the options that you have and the possible...

  • suppose mark currently has  $90,000 in wealth. Also suppose that there is a 1% chance that his...

    suppose mark currently has  $90,000 in wealth. Also suppose that there is a 1% chance that his house will be destroyed and cost $80,000 to repair (reducing your income to $10,000). Finally, suppose that his utility function is U = square root M , where M is income. What is the expected value of this situation? What is the expected utility? Would mark be willing to pay $500 to purchase an insurance policy that fully insures him against his loss? (Full...

  • You are conducting a research to find out the negative effects that heath insurance have in...

    You are conducting a research to find out the negative effects that heath insurance have in patients. You will be using a survey for your research Abstract Medical health insurance is one of the most discussed topics in the media, bet patients, and healthcare providers. In fact, medical health insurance coverage plays a significant role in the outcome of a patient healthcare because it determines the quality of care and the type of treatments that a patient may receive. Although...

  • Suppose there is a 1-in-100 chance that the Golden Gate Bridge will collapse due to a...

    Suppose there is a 1-in-100 chance that the Golden Gate Bridge will collapse due to a catastrophic event in any given year. The bridge is insured for $5 billion over a 20-year policy, and in the case of collapse, your insurance company will be required to pay out that entire amount. The discount rate mandated by San Francisco agencies is 5%. 1. What is the probability that the bridge does not collapse over the insurance policy period? 2. Use expected...

  • Name: ckhol hoor 1. Everyone knows that when you flip a coin, you have a 50 percent chance of hea...

    Name: ckhol hoor 1. Everyone knows that when you flip a coin, you have a 50 percent chance of heads and a 50 percent chance of tails. This means that out of 100 flips you should get 50 heads and 50 tails. However, if you actually flip a coin 100 times, a 50:50 ratio is only one among many possible outcomes. What if you get a ratio of 48 heads to 52 tails? How can we be certain that what...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT