9#7

Ronald Roth started his new job as controller with Aerosystems toddy Carole, the employee benefits clerk, gave Ronald a pocket thmt contains information on the company's health insurance options. Aerosystems offers its emplojees the cholce between a private insurance company plan (Blue Cross/Blue Shieid), an HMO, and a PPO. Ronald needs to review the packet and mave a decision on which health care program fits his needs. The following is an overview of that information a) The monthly premium cost to Ronald for the Biue Cross/Biue Shield plan wili be $52.59 For ail docior office visits, prescriptions, and major medical charges, Ronald will be responsible for 20 percent, and the insurance company wili cover 30 percent of covered charges. The annual deductible is $720. b) The HMO is provided to employees free of eharge. The copayment for doctors' office visits and major medical charges is 510 Prescription copayments are $5. The HMO pays 100 percent after Ronald's copayment. There is no annual deductible c) The POS requires that the employee pay $3477 per month to supplement the cost of the program with the company/s poyment if Ron uses health care providers within the plan, he pays the copayments as described above for the HMO with no annual deductible. He can also choose to use a health care provider out of the network and pay 20 percent of ali charges atter he pays a $720 deductible. The POS will pay for 80 percent of those covered visits Ronald decided to review his medical bilis from the previous year to see what costs he had incurred and to help him evaluate his choices. He visited his generai physician six times during the year at a cost of $120 for each visit. He also spent $75 and $99 on two Ronald decided to review his medical bills from the previous year to see what costs he had incurred and to help him evaluate his choices. He visited his general physician six times during the year at a cost of $120 for each visit. He also spent $75 and $99 on two prescriptions during the year What annual medical costs will Ronald pay using the sample medical expenses provided if he enrolls in the Blue Cross/Biue Shield plan? (Do not round intermediate calculations. Round your answer to 2 decimal places.)