Long Term Care Certification Practice Test

A husband and wife have different long-term care plans. If one plan pays an indemnity of $150 per day and the other pays 50% of a $250 daily rate, how much will they pay out of pocket per day?

1. $250

2. $225

3. $100

4. $75

The correct answer is: $225

To determine out-of-pocket expenses per day for the husband and wife with differing long-term care plans, we should first calculate how much each plan pays. For the husband’s plan, which pays an indemnity of $150 per day, he will receive the full amount of $150 toward his daily care costs. For the wife’s plan, which offers 50% of a $250 daily rate, we'll compute the payout as follows: 50% of $250 is $125. Therefore, she will receive $125 per day from her plan. Now, to figure out how much they need to pay out of pocket, we need to ascertain what their total daily care cost is. If we assume the total daily care cost is $250 (as indicated by the wife's plan daily rate), we can then calculate their out-of-pocket expenses: - The husband’s plan contributes $150. - The wife’s plan provides $125. Adding both contributions gives: $150 (husband) + $125 (wife) = $275 total coverage. Now, assuming that their daily care cost is indeed $250, we can see that they will not be paying out of pocket for the full care cost. The out-of-pocket expense can be calculated as: