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A health insurance policy pays 85 percent of physical therapy costs after a $480 deductible. In contrast, an HMO charges $29 per visit for physical therapy. How much would a person save with the HMO if he or she had 12 physical therapy sessions costing $120 each?

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shinmin

The solution for the problem is:

The Health Insurance is computed by: $480 + (.15)($720) (next 12 sessions) = $588

Cost of HMO: (12)($29) = $348

Deduct the health insurance and the cost of the HMO, you’ll get the total savings of: $588 - $348

Savings of $240 with HMO.

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