Ross needs to have a procedure done, and since he is over 65 he is on Medicare. Medicare says that according to their plan the allowed amount is
5
6
of what the doctors office charges. Of that allowed amount they will pay
3
4
and Ross will be out of pocket
1
4
.

If the procedure costs $12,000, how much will Ross have to pay?

Question

Ross needs to have a procedure done, and since he is over 65 he is on Medicare. Medicare says that according to their plan the allowed amount is 
5
6
 of what the doctors office charges. Of that allowed amount they will pay 
3
4
 and Ross will be out of pocket 
1
4
.

If the procedure costs $12,000, how much will Ross have to pay?

Vocaloid · Answer

if I understand this correctly

(5/6) * 12,000 will give you the allowed amount. We are expected to pay 1/4 of the allowed amount so

(5/6)*12000 * (1/4) will give you the paid amount upon simplification