Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your employer offers two health plan choices and requires that employees pay part of the premium cost. The fee-for-service option will cost you $270 per

Your employer offers two health plan choices and requires that employees pay part of the premium cost. The fee-for-service option will cost you $270 per month for single coverage, does not cover preventive care, and imposes a $470-per-person annual deductible and 20 percent coinsurance to a limit of $2,170. The fee-for-service plan also covers prescription drugs after a copay of $30 per prescription. The managed care option (an HMO) will cost you $370 per month, covers all medical services (including preventive care and prescription drugs), and requires a $10 copay for each office visit or prescription.

Over the course of a year, if you have an annual physical ($370), visit the doctor twice for illness ($50 per visit), and incur prescription drug costs of $500 (10 prescriptions at $50 each), how much would your out-of-pocket expenses be under both the fee-for-service plan and the managed-care option?

$__________ for fee-for-service, and $__________ for managed care.

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

Public School Finance Decoded

Authors: Jay C. Toland

1st Edition

1475827679, 978-1475827675

More Books

Students also viewed these Finance questions

Question

Prepare a constructive performance appraisal.

Answered: 1 week ago

Question

List the advantages of correct report formatting.

Answered: 1 week ago