Question: #22 in the manual page 274: Ralph has a pap with liability of 10/20/10 and basic pip with a 1000 deductible. He is struck as a pedestrian by a car, a week later he dies. Medical bills are 3000. and lost wages are 1000. How much will pip pay? a) 2000 b)2200 c)7000 d) 7200
Heres how I worked this problem: med. bill 3000. x .80% =2400. , lost wages 1000x .60%= 600 , death 5000. total 8000 - 1000 deductible = 7000 ( the correct answer is 7200, what am I doing wrong?
ok, I reworked it: med bills 3000 -1000 deductible =2000 x .80%= 1600. 1000 x.60% = 600, 5000 death = 7200 (correct answer) NOW my question is : Is the deductible always taken out of the Medical bills instead of adding all the losses up and then subtracting the deductible??
Kathleen,
You must subtract the deductible from the medical expenses first.
medicals: $3000 - $1000 = $2000 X 80% = $1600
lost wages: $1000 X 60% = $600
death benefit: $5000
$1600 + $600 + $5000 = $7200
Jan