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 7/8 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 ross had to pay $262.50, how much did the office want to charge for the procedure?

$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

Allowed amount in medicare plan

Amount left to be paid by Ross

amount paid by medicare plan

Amount paid by Ross

Total amount paid by Ross

Therefore doctor's office want to charge $763.63 for procedure

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