Question

Ronald started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave...

Ronald started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contains information on the company’s health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross/Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program fits his needs. The following is an overview of that information.

  1. The monthly premium cost to Ronald for the Blue Cross/Blue Shield plan will be $48.52. For all doctor office visits, prescriptions, and major medical charges, Ronald will be responsible for 20 percent and the insurance company will cover 80 percent of covered charges. The annual deductible is $500.
  2. The HMO is provided to employees free of charge. The copayment for doctors’ office visits and major medical charges is $15. Prescription copayments are $5. The HMO pays 100 percent after Ronald’s copayment. There is no annual deductible.

  3. The POS requires that the employee pay $33.44 per month to supplement the cost of the program with the company’s payment. If Ron uses health care providers within the plan, he pays the copayments as described above for the HMO. He can also choose to use a health care provider out of the service and pay 20 percent of all charges after he pays a $500 deductible. The POS will pay for 80 percent of those covered visits. There is no annual deductible for in-network expenses.

Ronald decided to review his medical bills from the previous year to see what costs he had incurred and to help him evaluate his choices. He visited his general physician four times during the year at a cost of $162 for each visit. He also spent $69 and $91 on prescriptions during the year. (For the purposes of the POS computation, assume that Ron visited a physician outside of the network plan. Assume he had his prescriptions filled at a network-approved pharmacy.)

What total costs will Ronald pay if he enrolls in the HMO plan?

Homework Answers

Answer #1

Refer the below images for the above mentioned Question:

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Ronald started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave...
Ronald started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contains information on the company’s health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross/Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program fits his needs. The following is an overview of that information. The monthly premium cost to Ronald...
Ronald Roth started his new job as controller with Aerosystems today. Carole, the employee benefits clerk,...
Ronald Roth started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contains information on the company’s health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross/Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program fits his needs. The following is an overview of that information.    a. Blue Cross/Blue Shield...
Ronald Roth started his new job as controller with Aerosystems today. Carole, the employee benefits clerk,...
Ronald Roth started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contains information on the company’s health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross/Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program fits his needs. The following is an overview of that information. a) The monthly premium cost...
Ronald Roth started his new job as controller with Aerosystems today. Carole, the employee benefits clerk,...
Ronald Roth started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contains information on the company’s health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross/Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program fits his needs. The following is an overview of that information. a) The monthly premium cost...
John Chang was seriously injured in a snowboarding accident that broke both his legs and an...
John Chang was seriously injured in a snowboarding accident that broke both his legs and an arm. His medical expenses included 7 days of hospitalization at $700 a day, $8,300 in surgical fees, $4,200 in physician's fees (including time in the hospital and seven follow-up office visits), $630 in prescription medications, and $2,500 for physical therapy treatments. All of these charges fall within customary and reasonable payment amounts. If John had an indemnity plan that pays 90 percent of his...
Please review the following below and provide , one-page reaction to this budget proposal. 1. Budget...
Please review the following below and provide , one-page reaction to this budget proposal. 1. Budget The President’s Budget and Health Care While the president’s budget is not likely to be acted upon by Congress, it does signal what the administration’s priorities are—as well as what policy initiatives they might push. Repeal the Affordable Care Act: The administration’s budget includes a plan that is based upon the plan put forward by Sens. Lindsey Graham (R-SC) and Bill Cassidy (R-LA) last...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT