Two Sisters, Two Plans

$-10$ points

Twins Joan and Jill love outdoor sports. On a recent ski trip, they fell off a ski lift. Each one had to have knee surgery.

Both sisters were rushed from the ski resort to an emergency room and then transferred to hospitals in their hometown, where they were admitted for two$-$day hospital stays. Because they chose different types of health insurance plans at their jobs, their coverage was different.

Joan had a Health Maintenance Organization $($HMO$)$ plan. She was directed to a hospital within her HMO's network and was limited in her selection of a knee surgeon.

Jill had a PPO plan $($Preferred Provider Organization$).$ She wanted more choice of doctors and hospitals when she signed up for her plan. After her accident, she was able to pick any doctor and any hospital listed in her plan's directory.

Notice the difference in what and how the plans pay for medical care. The HMO has no deductible or coinsurance, which means that most of the cost of care is prepaid through insurance premiums. The PPO has a doctor office co$-$payment, but no co$-$payment for other services. It also has a deductible that must be paid each year before her insurance pays any costs. The PPO also has coinsurance: a percentage of cost that the insured pays after the deductible has been met.

Using the information in the plan chart and the costs of medical care before insurance, students need to calculate each twin's cost and fill in a blank version of the chart below.

$\backslash$table$[[$Ski Accident Costs,,Joan's Cost $($with HMO$)$ Jill's Cost $($PPO$),],[$Emergency Room,$ $250,$$$,$$