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 premium cost to Ronald for the Blue Cross$/$Blue Shield plan will be $$45\mathrm{.}38.$ For all doctor office visits, prescriptions, and major medical charges, Ronald will be responsible for $15$ percent, and the insurance company will cover $85$ percent of covered charges. The annual deductible is $$500.$

b$)$ The HMO is provided to employees free of charge. The copayment for doctors' office visits and major medical charges is $$10.$ Prescription copayments are $$5.$ The HMO pays $100$ percent after Ronald's copayment. There is no annual deductible.

c$)$ The POS requires that the employee pay $$27\mathrm{.}52$ per month to supplement the cost of the program with the company's payment. If Ron uses health care providers within the plan, he pays the copayments as described above for the HMO with no annual deductible. He can also choose to use a healthcare provider out of the network and pay $15$ percent of all charges after he pays a $$500$ 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 help him evaluate his choices. He visited his general physician five times during the year at a cost of $$100$ for each visit. He also spent $$68$ and $$92$ on two prescriptions during the year.