Ronald Roth started his new job as controller with Aerosystemstoday. Carole, the employee benefits clerk, gave Ronald a packetthat contains information on the company’s health insuranceoptions. Aerosystems offers its employees the choice between aprivate insurance 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 anoverview of that information. a) The monthly premium cost to Ronaldfor the Blue Cross/Blue Shield plan will be $57.73. For all doctoroffice visits, prescriptions, and major medical charges, Ronaldwill be responsible for 20 percent and the insurance company willcover 80 percent of covered charges. The annual deductible is $800.b) The HMO is provided to employees free of charge. The copaymentfor doctors’ office visits and major medical charges is $20.Prescription copayments are $10. The HMO pays 100 percent afterRonald’s copayment. There is no annual deductible. c) The POSrequires that the employee pay $39.91 per month to supplement thecost of the program with the company’s payment. If Ron uses healthcare providers within the plan, he pays the copayments as describedabove for the HMO with no annual deductible. He can also choose touse a healthcare provider out of the network and pay 20 percent ofall charges after he pays a $800 deductible. The POS will pay for80 percent of those covered visits. Ronald decided to review hismedical bills from the previous year to see what costs he hadincurred and to help him evaluate his choices. He visited hisgeneral physician five times during the year at a cost of $160 foreach visit. He also spent $80 and $104 on two prescriptions duringthe year. What total costs will Ronald pay if he enrolls in the HMOplan?

Personal Annual Cost $______________