UNIVERSITY OF ILLINOIS AT URBANA CHAMPAIGN College of Business D E PAR T M E N T O F F I NAN C E Finance 230 Fall 2007 Assignment 6 Due October 5 2007 Use the coverages described in the 2007 2008 U of I Student Health Insurance Plan for Undergraduates to determine how much your student health policy will pay in the following situations and assume the following 1 2 3 4 5 6 The average semi private room rate charged by each hospital is 500 All treatments are medically necessary Unless otherwise indicated all charges are considered to be the Usual and Customary fees Each situation is the only claim you have ever had while insured under this Insurance Plan All treatment is provided by plan provider hospitals or facilities and licensed providers Unless otherwise indicated each loss occurred during the academic year 1 Running into the classroom late one Friday you trip and fall You land on the edge of a desk mouth first and you chip a tooth You visit a dentist later that day and he fixes the chipped tooth You also have the dentist fix a cavity that has been hurting for a while The dentist charges you 200 for fixing the chipped tooth and 100 to repair the cavity A D 0 160 B E 40 None of the above C 80 The cavity is not covered because the policy only covers for injury to sound natural teeth and the removal of partially bony or completely bony impacted wisdom teeth and TMJ No routine dental care is provided The chipped tooth is covered The 150 deductible applies first and then 80 of the remaining 50 is 40 2 After trying to take the first Fin 230 exam without studying you feel extremely depressed You go to a clinic to talk to a psychiatrist You have a total of ten visits to this psychiatrist over the semester before you recover You are charged 60 per visit Your policy will pay A D 0 350 B E 225 None of the above C 300 Pg 9 The policy will pay 50 of charges up to a maximum of 35 per day In this case the policy would pay 50 of 60 per day or 30 per day There are 10 days and 30 per day would be a total of 300 3 You are playing intramural baseball when you are struck in the head by a baseball You fall into a coma and are hospitalized for 200 days Your physician visits you once each day You are billed 100 for each visit by your physician 500 per day for hospital room and board 25 000 for x rays 10 000 for drugs 40 000 in laboratory tests and 30 000 for medical supplies A D 0 222 900 B E 200 000 None of the above The limit for intramural sports is 75 000 C 218 900 Room and Board X rays Medical Supplies Laboratory Test Medicine drugs Total Deductible 100 Total Insurance Pays 80 of First 10 000 Excess over 10 000 subject to max of 75 000 total Physician Visit 0 b c exceed max payment Cost 500 25 000 x 200 days 100 000 25 000 30 000 40 000 10 000 205 000 100 204 900 8 000 67 000 100 x 200 days 0 75 000 4 One night you are stricken with a 104 degree temperature so you decide to go to the emergency room The doctor performs some laboratory tests and prescribes you some medicine A week later you still don t feel any better so you make an appointment with another doctor who performs even more laboratory tests and prescribes new medicine You are charged 200 for the emergency room visit 100 for the visit to the doctor s office 100 for each set of medicine and 200 for each set of laboratory tests A D 400 560 B E 440 None of the above C Doctor s Visit ER treatment Medicine Not Covered Laboratory Tests Total ER Visit 0 200 0 200 400 Doctor s Visit 100 0 0 200 300 Outpatient Deductible 150 ER Deductible 50 Total 150 50 200 0 0 300 Insurance pays 80 of first 10 000 in medical cost 200 0 8 160 300 0 8 240 520 160 240 400 5 You have been having trouble sleeping so you visit a doctor who runs some tests and diagnoses you as having sleep apnea The doctor tells you to wear a mask that is hooked up to a Continuous Positive Airway Pressure CPAP machine at night to cure this problem You are billed 100 for the doctor s visit 200 for the laboratory tests and 500 for CPAP machinery A D 0 520 B E 120 None of the above C 480 Sleep Apnea is a sleeping disorder and sleeping disorders are excluded Pg 15 25 6 You hurt your back slouching too much in class one more reason to stay awake in class You visit a doctor who runs an MRI on you and then prescribes some pain medication The doctor charges you 200 for the doctor s visit 2 000 for the MRI and 150 for medicine A D 0 1 640 B E MRI lower of 80 of Usual and Customary or max of 1200 1 200 Medicine Excluded Doctor s Visit Deductible 150 Total 0 200 150 50 Insurance Pays MRI 80 of First 10 000 80 x 50 1 240 None of the above C 1 360 1 200 40 1 240 7 You failed to achieve your goals set in the Goal Setting Assignment of Fin 230 and out of frustration you kick the brick wall next to you as hard as you can You break your ankle You are hospitalized for 5 days to have surgery to repair the damage You are billed 500 per day for hospital room and board 8 000 for x rays 10 000 for the surgeon 6 000 for the assistant surgeon and 4 000 for the anesthesia which is administered by a licensed Physician who remained in constant attendance during your operation A D 0 28 400 Room and Board X rays Total Deductible 100 Total Insurance Pays 80 of First 10 000 Excess over 10 000 Surgeon Assistant Anesthesia B E Cost 500 8 000 10 000 6 000 4 000 x 5 days 22 720 None of the above C 24 400 2 500 8 000 10 500 100 10 400 8 000 400 8 000 4 800 3 200 24 400 x 0 80 x 0 80 x 0 80 8 You are hospitalized for 30 days to treat a substance abuse condition You are billed 600 per day for room and board and 5 500 for medication while you are in the hospital A 0 B 18 400 C 20 000 D 21 400 E None of the above Pg 7 states that Maximum Daily Room and Board Allowance shall not exceed the average semi private room rate charged by the Hospital n which confined Since the average semiprivate room rate is stated in …