Managed care
In terms of using such a plan, unlike an HMO plan, which has a copayment cost share feature (a nominal payment generally paid at the time of service), a PPO generally does not have a copayment but offers a deductible and a coinsurance feature. The deductible must be paid in full before any benefits are provided. After the deductible is met, the coinsurance benefits apply. If the PPO plan is an 80% coinsurance plan with a $1,000 deductible, the patient pays 100% of the allowed provider fee up to $1,000. The insurer will pay 80% of the other fees, and the patient will pay the remaining 20%. Charges above the allowed amount are not payable by the patient or insurer but written off as a discount by the physician.
Charitable contribution deductions in the United States
To illustrate, suppose that the donor has an adjusted gross income of $100,000. In the year 2004, he gives $60,000 in cash to the American Cancer Society. The donor may deduct "only" $50,000 in 2004. Why? Because anything over that amount is in excess of 50% of his adjusted gross income (100,000 adjusted gross income × 50% = 50,000). The remaining $10,000 (60,000 total donation − 50,000 deducted in 2004 = 10,000) carries forward to 2005, at which point he may deduct it.