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
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. Blue Cross/Blue Shield plan: The monthly premium cost to Ronald will be $53.61. 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 $720. b. The HMO is provided to employees free of charge. The copayment for doctors' office visits and major medical charges is $15. Prescription copayments are $10. The HMO pays 100 percent after Ronald's copayment. No annual deductible. c. The POS requires that the employee pay $35.81 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. 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 $720 deductible. The POS will pay for 85 percent of those covered visits. No annual deductible. 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 four times during the year at a cost of $180 for each visit. He also spent $76 and $100 on prescriptions during the year. to use a health care provider out of the network and pay 15 percent of all charges after he pays a $720 deductible. The POS will pay for 85 percent of those covered visits. No annual deductible. 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 four times during the year at a cost of $180 for each visit. He also spent $76 and $100 on prescriptions during the year. What annual medical costs will Ronald pay using the sample medical expenses provided if he were to enroll in the Blue Cross/Blue Shield plan? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Personal annual cost

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

Finance Bundling And Finance Transformation

Authors: Frank Keuper, Kai-Eberhard Lueg

1st Edition

3658042109, 978-3658042103

More Books

Students also viewed these Finance questions

Question

Did you add the logo at correct size and proportion?

Answered: 1 week ago