contains information on the company's health insurance options. Aerosystems offers its employees the choice between a privateinsurance company plan (Blue Cross/Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision onwhich health care program fits his needs. The following is an overview of that information.a) The monthly premium cost to Ronald for the Blue Cross/Blue Shield plan will be $49.51. For all doctor office visits, prescriptions, andmajor medical charges, Ronald will be responsible for 20 percent, and the insurance company will cover 80 percent of coveredcharges. The annual deductible is $640.b) The HMO is provided to employees free of charge. The copayment for doctors' office visits and major medical charges is $20.Prescription copayments are $10. The HMO pays 100 percent after Ronald's copayment. There is no annual deductible.c) The POS requires that the employee pay $31.68 per month to supplement the cost of the program with the company's payment. IfRon uses health care providers within the plan, he pays the copayments as described above for the HMO with no annualdeductible. He can also choose to use a health care provider out of the network and pay 20 percent of all charges after he pays a$640 deductible. The POS will pay for 80 percent of those covered visits.Ronald decided to review his medical bills from the previous year to see what costs he had incurred and to help him evaluate hischoices. He visited his general physician four times during the year at a cost of $160 for each visit. He also spent $72 and $96 on twoprescriptions during the year. Assume Ron visited a physician outside of the network plan but had his prescriptions filled at a network-approved pharmacy.If Ronald selects the POS plan, what will his annual medical costs be? (Do not round intermediate calculations. Round your answer to2 decimal places.)Personal annual cost

To calculate Ronald's annual medical costs under the POS plan, we need to consider the monthly…

Answered: If Ronald selects the POS plan, what…

If Ronald selects the POS plan, what will his annual medical costs be? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Personal annual cost

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 39P

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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. a. The monthly premium cost to Ronald for the Blue Cross/Blue Shield plan will be $45.32. 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 $350. b. The HMO is provided to employees free of charge. The copayment for doctors' office visits and major medical charges is $15. Prescription copayments are $9. The HMO pays 100 percent after Ronald's copayment. There is no…
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. a. The monthly premium cost to Ronald for the Blue Cross/Blue Shield plan will be $43.27. 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. b. The HMO is provided to employees free of charge. The copayment for doctors' office visits and major medical charges is $10. Prescription copayments are $5. The HMO pays 100 percent after Ronald's copayment. There is no…
Ronald started his new job as a controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contained information on the company’s health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross or Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program best fits his needs. The following is an overview of that information. The monthly premium cost for Ronald for the Blue Cross or Blue Shield plan will be $47.34. For all doctor's office visits, prescriptions, and major medical charges, Ronald will be responsible for 20 percent and the insurance company will cover 80 percent of the covered charges. The annual deductible is $500. The HMO is provided to employees free of charge. The copayment for doctors’ office visits and major medical charges is $15. Prescription copayments are $15. The HMO pays 100 percent after Ronald’s…
Ronald started his new job as a controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contained information on the company’s health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross or Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program best fits his needs. The following is an overview of that information. The monthly premium cost for Ronald for the Blue Cross or Blue Shield plan will be $44.82. For all doctor office visits, prescriptions, and major medical charges, Ronald will be responsible for 30 percent and the insurance company will cover 70 percent of the covered charges. The annual deductible is $450. The HMO is provided to employees free of charge. The copayment for doctors' office visits and major medical charges is $10. Prescription copayments are $7. The HMO pays 100 percent after Ronald's copayment.…
Ronald started his new job as a controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contained information on the company’s health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross or Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program best fits his needs. The following is an overview of that information. The monthly premium cost for Ronald for the Blue Cross or Blue Shield plan will be $48.32. For all doctor's office visits, prescriptions, and major medical charges, Ronald will be responsible for 20 percent and the insurance company will cover 80 percent of the covered charges. The annual deductible is $500. The HMO is provided to employees free of charge. The copayment for doctors’ office visits and major medical charges is $25. Prescription copayments are $30. The HMO pays 100 percent after Ronald’s…
choose three major insurance companies, obtain the premiums of life insurance policies for a 30 year old man with $300, 000 insurance coverage (death benefit). Compare the premium for term, whole or universal life insurance. Prepare a premium table and indicate which policy you consider and why?
Your friend Taliesha Jackson of Edwardsville, Illinois, recently changed to a new job as a CPA in a moderate-size accounting firm. Knowing that you were taking a personal finance course, she asked your advice about selecting the best health insurance plan. Her employer offered five options. In addition, she could open a flexible spending arrangement to pay some of the premiums: Option A: A traditional health insurance plan with a $500 annual deductible and an 80 percent/20 percent coinsurance clause with a $2,000 out-of-pocket limit. Taliesha must pay $80 per month toward this plan. Option B: Same as Option A except that a PPO is associated with the plan. If Taliesha agrees to have services provided by the PPO, her annual deductible drops to $200 and the coinsurance clause is waived. As an incentive to get employees to select Option B, Taliesha’s employer will provide dental expense insurance worth about $40 per month. Option C: Another PPO health insurance plan with a $200 annual…
B. A patient is a member of a health plan with a 15 percent discount from the provider’s usual fees and a $10 copay. The day's charges are $480. What are the amounts that the HMO and the patient each pay?
(Table: Insurance Claims) Five people, who vary in health status, are considering buying health insuranc. Each person knows his or her own health status and expected medical bills, which are given in the table. Assume that each person is equally likely to file a claim. Annual Expected Health Insurance Claim Person Darwin $30,000 Edgar Fran Hilda Jared 20,000 10,000 8,000 2,000 Suppose that the insurance company does not know the health status of any one person but knows the expected claims of the group as a whole. If the insurance company sets the premium based on the average expected claims of these five people, then people would be willing to pay the premium. O two O five O three four undefined
(Table: Insurance Claims) Five people vary in health status. Each person knows his or her own health status and expected medical bills, which are given in the table. These people are considering buying health insurance. Assume that each person is equally likely to file a claim. Annual Expected Health Insurance Claim Person Darwin Edgar Fran Hilda Jared $30,000 20,000 10.000 8,000 2,000 Suppose that the insurance company does not know the health status of any one person but does know the expected claims of the group as a whole. If the insurance company sets the premium based on the average expected claims of these five people, then people would be willing to pay the premium. O five O four O three O two
A patient is a member of a health plan with a 15 percent discount from the provider's usual fees and a $10 copay. The day's charges are $480. What amount should the HMO pay? What amount should the patient pay?
Health Care Choices. You have a choice of two health insurance plans with the following terms. Assume that both plans cover 100% of expenses after the deductible and co-payments. Plan A Plan B Monthly premium: $300 Monthly premium: $700 Annual deductible: $5000 Annual deductible: $1500 Office visit co-payment: $25 Office visit co-payment: $25 Emergency room co-payment: $500 Emergency room co-payment: $200 Surgical operations co-payment: $250 Surgical operations: no co-payment Suppose that during a one-year period your family received the following medical bills. Service Total cost (before insurance) Jan. 23: Emergency room $800 Feb. 14: Office visit $100 Apr. 13: Surgery $1400 June 14: Surgery $7500 July 1: Office visit $100 Sept. 23: Emergency room $1200 Determine your annual health care expenses if you have Plan A. Determine your annual health care expenses if you have Plan B. Determine your health care expenses for the year if you have…