Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An employee has a choice of two health insurance plans with the following terms. Assume that both plans cover 100% of expenses after the deductible

An employee has a choice of two health insurance plans with the following terms. Assume that both plans cover 100% of expenses after the deductible and co-payments. Suppose that during a one-year period the employee's family received the following medical bills. Complete parts (a), (b), and (c) below.

Plan A

Plan B

Expenses

Total cost

(before insurance)

Monthly premium:

$350

Annual deductible:

$4600

Office visit

co-payment:

$30

Emergency room

co-payment:

$300

Surgical operations

co-payment:

$250

Monthly premium:

$900

Annual deductible:

$1400

Office visit

co-payment:

$30

Emergency room

co-payment:

$200

Surgical operations

co-payment: none

Jan. 23: Emergency room

$800

Feb. 14: Office visit

$100

Apr. 13: Surgery

$580

June 14: Surgery

$8000

July 1: Office visit

$100

Sept. 23: Emergency room

$900

Determine the health care expenses if the family chooses Plan A.

The family's health care expenses with Plan A insurance policy would be $

Determine the health care expenses if the family chooses Plan B.

The family's health care expenses with no iinsurance policy would be $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managements Reluctance In Implementing Audit Recommendations

Authors: Tariro Chinamasa

1st Edition

6139980240, 978-6139980246

More Books

Students also viewed these Accounting questions