Samuel Nguyen was seriously injured in a skiing accident that broke both his legs and an arm. His medical expenses included 8 days of hospitalization at $1,200 a day, $4,300 in surgical fees, $6,600 in physician's fees (including time in the hospital and seven follow-up office visits), $600 in prescription medications, and $1,700 for physical therapy treatments. All of these charges fall within customary and reasonable payment amounts.

A.- If Samuel had a health insurance plan that pays 90 percent of his charges with a $500 deductible and a $5,000 stop-loss provision, how much would he have to pay out of pocket? Round to the nearest dollar.

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b.- What would Samuels out-of-pocket expenses be if he belonged to an HMO with a $15 co-pay for office visits? Round to the nearest dollar.

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c.- Monthly premiums are $145 for the standard plan and $305 for the HMO. If he had no other medical expenses this year, which plan would have provided more cost-effective coverage for Samuel?

1.- HMO or 2.- Indemnity Plan