Question
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___ $
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