Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ronald Roth started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contains information on the

image text in transcribed
Ronald Roth started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contains information on the company's health insurance options. Aerosystems offers its employees the choice between a private Insurance company plan (Blue Cross/Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program fits his needs. The following is an overview of that information. a) The monthly premlum cost to Ronaid for the Biue Cross/Blue Shield plan will be $51.57. For all doctor office visits, prescriptions, and major medical charges, Ronald will be responsible for 15 percent, and the insurance company will cover 85 percent of covered charges. The annual deductible is $700. b) The HMO is provided to employees free of charge. The copayment for doctors' office visits and major medical charges is $20. Prescription copayments are \$10. The HMO pays 100 percent after Ronald's copayment. There is no annual deductible. c) The POS requires that the employee pay $33.75 per month to supplement the cost of the program with the company's payment. 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 15 percent of all charges after he pays a $700 deductible. The POS will pay for 85 percent of those covered visits. Ronald decided to review his medical bills from the previous year to see what costs he had incurred and to heip him evaluate his choices. He visited his general physician five times during the year at a cost of $140 for each visit. He also spent $74 and $98 on two prescriptions during the year. What annuol medical costs will Ronaid pay using the sample medical expenses provided if he enrolls in the Blue Cross/Blue Shield plan? (Do not round intermediate calculations, Round your answer to 2 decimal ploces.)

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

World Finance Since 1914

Authors: Paul Einzig

1st Edition

0415539471, 978-0415539470

More Books

Students also viewed these Finance questions

Question

e. What are notable achievements of the group?

Answered: 1 week ago