Your employer has offered you a choice of a lower cost HMO plan or a higher cost standard health insurance plan. Next year you will need physical therapy and want to compare the cost of the therapy under the two plans.

The standard health insurance plan pays 70% of therapy after a $200 deductible, while the HMO will pay the full cost of the therapy as long as you pay a $15 co-payment per visit.

Assume you need 10 therapy sessions that will cost $60 each for the high cost plan ($15 for HMO).

How much would you save using the HMO vs. the traditional health insurance plan?

$450

$190

$280 Correct!

$170

Please explain how to do this