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Ronald started his newjob as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contains information on the company's health

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Ronald started his newjob 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 CrossiBlue 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 $43.32. For all doctor office visits, prescriptions, a major medical charges, Ronald will be responsible for 20 percent and the insurance company will cover 80 percent of covered charges. The annual deductible is $500. b. The HMO is provided to employees free of charge. The copayment for doctors' affice visits and major medical charges is $25. Prescription copayments are $20. The HMO pays 100 percent after Ronald's copayment. There is no annual deductible. c. The POS requires that the employee pay $27.44 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 cate providet out of the service and pay 20 percent of all charges after he pays a $500 deductible. The POS will pay for 80 percent of those covered visits. There is no annual deductible for in-network expenses. Ronaid 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 $154 for each visit. He also spent $73 and $97 on prescriptions during the year. (For the purposes of the POS computation, assume that Ron visited a physician outside of the network plan Assume he had his prescriptions fitled ata network-appioved pharmacy.) What onnual medical costs will Ronald pay using the sample medical expenses provided if he were to enroll in the Blue Cross/Biue Shield plan? (Round your intermediate colculotions and final answer to 2 decimal places.)

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