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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 to Ronald for the Blue Cross Blue Shield plan will be 43 34 For all doctor office visits prescriptions and major medical charges Ronald will be responsible for 25 percent and the insurance company will cover 75 percent of covered charges The annual deductible is 550 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 25 46 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 with no annual deductible He can also choose to use a health care provider out of the network and pay 25 percent of all charges after he pays a 550 deductible The POS will pay for 75 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 his choices He visited his general physician five times during the year at a cost of 110 for each visit He also spent 66 and 90 on two prescriptions 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 to 2 decimal places T Personal annual cost

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