Problems 7, 8, and 9 are based on the following scenario:

Ronald Roth started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contains information on the company’s health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross/Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program fits his needs. The following is an overview of that information.

7. What annual medical costs will Ronald pay using the sample medical expenses provided if he were to enroll in the Blue Cross/
Blue Shield plan?