Consider a relatively simple health insurance plan with the following provisions. Office visits require a?co-payment of ?$20.Emergency room visits have a ?$270 ?co-payment. Surgical operations have a ?$1,000 deductible? (the first ?$1,000is paid out of? pocket). The monthly premium is ?$370. During a? one-year period, somebody insured by this health insurance has the expenses shown to the right. Complete parts?(a) and? (b) below.
Expenses Total Cost
Feb. 18 Office Visit $150
Mar. 26 Emergency Visit $580
Apr. 23 Office Visit $150
May 14 Surgery $6,500
July. 1 Office Visit $150
Sept. 23 Emergency Room $840
a. Determine the? person's health care expenses for the year with the insurance policy.
b. Determine the? person's health care expenses for the year without the insurance policy.