Financial Planning Exercise 2 Out-of-pocket plan costs John Chang was seriously injured in a snowboarding accident that broke both his legs and an arm. His medical expenses included 8 days of hospitalization at $1, 000 a day, $4, 4^0 in surgical fees, $6, 700 in physician's fees (including time in the hospital and eight follow up office visits), $620 in prescription medications, and $3, 000 for physical therapy treatments. All of these charges fall within customary and reasonable payment amounts. If John had an indemnity plan that pays 80 percent of his charges with a $1, 000 deductible and a $5, 000 stop-loss provision, how much would he have to pay out of pocket? Round to the nearest dollar. What would John's out-of-pocket expenses be if he belonged to an HMO with a $30 co-pay for office visits? Round to the nearest dollar. Monthly premiums are $220 for the indemnity plan and $240 for the HMO. If he has no other medical expenses this year, which plan provides more cost-effective coverage for John? Financial Planning Exercise 2 Out-of-pocket plan costs John Chang was seriously injured in a snowboarding accident that broke both his legs and an arm. His medical expenses included 8 days of hospitalization at $1, 000 a day, $4, 4^0 in surgical fees, $6, 700 in physician's fees (including time in the hospital and eight follow up office visits), $620 in prescription medications, and $3, 000 for physical therapy treatments. All of these charges fall within customary and reasonable payment amounts. If John had an indemnity plan that pays 80 percent of his charges with a $1, 000 deductible and a $5, 000 stop-loss provision, how much would he have to pay out of pocket? Round to the nearest dollar. What would John's out-of-pocket expenses be if he belonged to an HMO with a $30 co-pay for office visits? Round to the nearest dollar. Monthly premiums are $220 for the indemnity plan and $240 for the HMO. If he has no other medical expenses this year, which plan provides more cost-effective coverage for John