An HMO pays only 75 of approved charges for its HMO patient

An HMO pays only 75% of approved charges for its HMO patient members. If a member goes out of the approved network of providers and incurs a charge of $ 1,100, of which $ 650 is approved, how much must the member pay?

Solution

Amount paid by HMO = 75/100*650 = 487.5

Amount paid by member = 1100-487.5 = $612.5