Mrs. Garcia came to the Obstetrics Department of Monroe Health System pregnant and ready to deliver her first baby. She has health insurance coverage with United Healthcare provided by her employer. United has a contract with Monroe Health System, that gives United Healthcare a 20% discount from Monroe's full established rates. If Monroe Health System's rate for normal newborn delivery, including mother and baby, is $5,700, what is the amount of the contractual allowance that must be recorded related to the delivery of Mrs. Garcia's baby? A. $1,140.00 B.$1,410.00 C. $3,850.00 D.$4,560.00 E.$6,840.00

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 39P
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Mrs. Garcia came to the Obstetrics
Department of Monroe Health System
pregnant and ready to deliver her first baby.
She has health insurance coverage with
United Healthcare provided by her employer.
United has a contract with Monroe Health
System, that gives United Healthcare a 20%
discount from Monroe's full established rates.
If Monroe Health System's rate for normal
newborn delivery, including mother and baby,
is $5,700, what is the amount of the
contractual allowance that must be recorded
related to the delivery of Mrs. Garcia's baby?
A. $1,140.00
B.$1,410.00
C. $3,850.00
D.$4,560.00
E.$6,840.00
Transcribed Image Text:Mrs. Garcia came to the Obstetrics Department of Monroe Health System pregnant and ready to deliver her first baby. She has health insurance coverage with United Healthcare provided by her employer. United has a contract with Monroe Health System, that gives United Healthcare a 20% discount from Monroe's full established rates. If Monroe Health System's rate for normal newborn delivery, including mother and baby, is $5,700, what is the amount of the contractual allowance that must be recorded related to the delivery of Mrs. Garcia's baby? A. $1,140.00 B.$1,410.00 C. $3,850.00 D.$4,560.00 E.$6,840.00
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