Dish Soap Shop provides its employees with 2 health plan options: A PPO, with a $1,400 deductible and a $25 copay within the network, a 80/20% coinsurance in network, and a $25 copay for prescriptions. Maximum annual out of pocket expense is $3,500 (Premiums are $550 a month for an individual). A PPO with HSA with $2,000 deductible and a $40 copay within the network, a 70/30% coinsurance in network, and a $25 copay for prescriptions

Maximum annual out of pocket expense is $6,600 (Premiums are $450 a month for an individual).

Matt is single, age thirty-nine earned $95,000 last year. If he got sick and his illness cost $14,000 (after discounts, with no drugs and no co-pays), what will be his out of pocket expense under the PPO plan?

(answers)

$1,400+($12,600*.2) = $3,920

$1,400+($12,600*.8)

$3,500

Only the deductible of $1,400