Question

Late payment of medical claims can add to the cost of health care. An article reported that the mean time from the date of service to the date of payment for one insurance company was 41.4 days during a recent period. Suppose that a sample of 100 medical claims is selected during the latest time period. The sample mean time from the date of service to the date of payment was 39.6 days, and the sample standard deviation was 7.4 days. a

Answer 1

Mediclaim is a kind of contract, done among two parties. One assures that in case of any medical expenses, it will provide support financially.

Whereas on other hand, the beneficiary party for getting such services, pays a nominal amount, at a fixed interval of time.

In case of any incident, causing medical expenses, the party is liable to pay the mediclaim holder, but in some cases the financial expenses becomes costly, in accordance with the time taken for the company to pay the insurer.