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

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Ronald started his new job as a controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronaid a packet that contained information on the company's health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross or Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program best fits his needs. The following is an overview of that information a. The monthly premium cost for Ronald for the Blue Cross or Blue Shield plan will be $42.57. For all doctor office visits, prescriptions, and major medical charges, Ronald will be responsible for 25 percent and the insurance company will cover 75 percent of the covered charges. The annual deductible is $450 b. The HMO is provided to employees free of charge. The copayment for doctors' office visits and major medical charges is \$5. Prescription copayments fre \$6. The HMO pays 100 percent after Ronald's copayment. There is no annual deductible: c. The POS requires that the employees pay $24,59 per month to supplement the cost of the program with the company's payment, If Ronald uses health care providers within the plan, he poys the copayments as described above for the HMO. He can also choose to use a health care provider outside of the service and pay 15 percent of the covered charges ofter he pays a $400 deductible. The POS will pay for 85 percent of those covered visits. There is no annual deductible for in-network charges. 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 three times during the year at a cost of $130 for each visit. He also. spent $68 and $91 on prescriptions during the year, (For the purposes of the POS computation, assume that Ronald visited a physician outside of the network plan. Assume he had his prescriptions filled at a network-approved pharmacy.) If Ronaid selects the POS plan, what would his annual medical costs be? Note: Round your intermediate calculations and final answer to 2 decimal places

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