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 $700 a day, $7,000 in surgical fees, $8,000 in physician's fees (including time in the hospital and seven follow-up office visits), $650 in prescription medications, and $2,600 for physical therapy treatments. All of these charges fall within customary and reasonable payment amounts.

1. If John had an indemnity plan that pays 90 percent of his charges with a $250 deductible and a $5,000 stop-loss provision, how much would he have to pay out-of-pocket? Round to the nearest dollar. $
2. What would John's out-of-pocket expenses be if he belonged to an HMO with a $40 co-pay for office visits? Round to the nearest dollar. $
3. Monthly premiums are $115 for the indemnity plan and $385 for the HMO. If he had no other medical expenses this year, which plan would have provided more cost-effective coverage for John?