Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tommy and Amanda Perez are a dual-earner couple with a young son, Bobby. Tommy and Amanda each receive health care coverage for themselves from their

Tommy and Amanda Perez are a dual-earner couple with a young son, Bobby. Tommy and Amanda each receive health care coverage for themselves from their respective employers. Their employers pay the premiums for the workers, and coverage for dependents is available if the worker pays the premium cost. They are trying to decide under which policy to cover Bobby for the upcoming year. The following is a brief description of their policies and projected medical expenses for Bobby.

Tommy's HMO Coverage Amanda's Major Medical Coverage
Maximum limits unlimited $500,000/year/person
Deductible/Copayment $20/doctor's visit, $50/urgent care clinic visit, $15/prescription, $ 0/in-hospital charges $500/year/person
Participation not applicable 80/20 with a $2,500/year/person cap
Major exclusions Dental and vision Prescriptions, dental, and vision
Monthly premiums for dependents $105/dependent/month $90/dependent/month

Bobby is a healthy 8-year-old who is accident-prone. Based on his past medical records, Tommy and Amanda expect the following covered medical costs for the year: 6 trips to the doctoraverage cost of $75 per trip 2 trips to the urgent care clinicaverage cost of $300 per trip 1 broken boneaverage cost of in-hospital surgery $1,250 12 prescriptionsaverage cost of $45 per prescription Answer the following questions by filling integers into the following blanks. Round to the nearest integers and do not put thousand separators. a. For Bobby under Tommy's HMO, the Perezs familys total out-of-pocket medical costs (including all of the copayments) are $___ . For Bobby under Tommy's HMO, the Perezs familys annual premium payments are $ ___ . So, for Bobby under Tommy's HMO, the Perezs familys total costs are $ __.

b. For Bobby under Amanda's Major Medical plan, the Perezs familys total medical coinsurance payments are $ __ ; they also have to pay $__ deductibles and $ __ expenses from prescriptions, dental, and vision, which are not covered by the plan. For Bobby under Amanda's Major Medical plan, the Perezs familys annual premium payments are $ ___ . So, for Bobby under Amanda's Major Medical plan, the Perezs familys total costs are___ $

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

Modernize Your Audit Department Five Critical Areas For Improvement

Authors: Toby DeRoche

1st Edition

B08FKW8B91, 979-8674160274

More Books

Students also viewed these Accounting questions

Question

1. Let a, b R, a Answered: 1 week ago

Answered: 1 week ago

Question

1. Explain how business strategy affects HR strategy.

Answered: 1 week ago