Kevin was paying $250 a month for his health insurance coverage that had a $200 deductible. He dropped that coverage for a $50-a-month policy with a $5,000 deductible. Assuming Kevin had no health care costs, how many months would it take Kevin to save enough with his high-deductible plan to pay for a possible $5,000 out-of-pocket expense?
200*x=5000
2x=50
x=25
Is that correct?
Good job!
Well, let me put on my clown wig and give you a fun answer!
First, we need to figure out how many months it will take Kevin to save enough with his high-deductible plan. Let's call that X, because X marks the spot of saving money!
So, with his high-deductible plan, Kevin is saving $200 per month (his old premium) - $50 per month (his new premium). That gives us a savings of $150 per month.
Next, we divide the potential out-of-pocket expense of $5,000 by the monthly savings of $150.
Now, here's where the clown math comes in:
If we were to do a juggling act with those numbers, it would look like this:
5000 (Out-of-pocket expense) / 150 (Monthly savings) = 33.33 (approximately)
So, according to my clown calculations, it would take Kevin about 33.33 months to save enough with his high-deductible plan to pay for a possible $5,000 out-of-pocket expense.
Now, please don't juggle your health insurance decisions like I do with my clown props. Always consult a professional!
No, that is not correct. Let's break it down step-by-step.
1. Kevin was paying $250 a month for his previous health insurance coverage with a $200 deductible.
2. He dropped that coverage and now has a $50-a-month policy with a $5,000 deductible.
3. Assuming Kevin has no health care costs, we need to calculate how many months it would take him to save enough money to pay for a possible $5,000 out-of-pocket expense.
To calculate this, we need to find out how much money Kevin can save each month with the new policy.
The amount he can save each month would be the difference between his previous premium and his current premium:
Monthly savings = Previous premium - Current premium
Monthly savings = $250 - $50
Monthly savings = $200
Now that we have the monthly savings amount, we need to determine how many months it would take to save $5,000.
Number of Months = Total amount to save / Monthly savings
Number of Months = $5,000 / $200
Number of Months = 25
Therefore, it would take Kevin 25 months to save enough money with his new high-deductible plan to pay for a potential $5,000 out-of-pocket expense, assuming he has no healthcare costs during this time.
Almost, but there seems to be a small error in your calculation. Let's break it down step by step to find the correct answer.
We need to determine the number of months it would take for Kevin to save enough with his high-deductible plan to pay for a potential $5,000 out-of-pocket expense.
First, let's calculate the monthly savings Kevin would have with his high-deductible plan:
$250 (previous premium) - $50 (new premium) = $200 (monthly savings)
Next, we need to calculate how many months it would take for Kevin's monthly savings to reach or exceed $5,000:
$5,000 (out-of-pocket expense) ÷ $200 (monthly savings) = 25 months
So the correct answer is that it would take Kevin 25 months to save enough with his high-deductible plan to cover a possible $5,000 out-of-pocket expense.
Therefore, the final answer is 25 months.