Answer:
$763.63
Step-by-step explanation:
Given: Ross needs to have a procedure done, allowed amount by is 7/8 of what the doctor charges, Ross pays 1/4 and medicare pays 3/4 of amount.
To Find: If Ross had to pay $262.50, how much did the office want to charge.
Solution:
Let the amount asked by the doctor's office [tex]=\text{x}[/tex]
Allowed amount in medicare plan [tex]=\frac{7}{8}\text{x}[/tex]
Amount left to be paid by Ross [tex]=\text{x}-\frac{7}{8}\text{x}=\frac{\text{x}}{8}[/tex]
amount paid by medicare plan[tex]=\frac{3}{4}\text{of allowed amount}[/tex]
[tex]=\frac{3}{4}\times\frac{7}{8}\text{x}[/tex]
[tex]\frac{21}{32}\text{x}[/tex]
Amount paid by Ross[tex]=\frac{1}{4}\text{of allowed amount}+\text{amount left to be paid by Ross}[/tex]
[tex]\frac{1}{4}\times\frac{7}{8}\text{x}+\frac{1}{8}\text{x}[/tex]
[tex]\frac{11}{32}\text{x}[/tex]
Total amount paid by Ross[tex]=\$262.50[/tex]
[tex]\frac{11}{32}\text{x}=\$262.5[/tex]
[tex]\text{x}=\frac{32\times262.5}{11}[/tex]
[tex]\text{x}=\$763.63[/tex]
Therefore doctor's office want to charge $763.63 for procedure
