Tommy and Amanda Perez are a dual-earner couple with a young son, Bobby. Tommy and Amanda each receive health care coverage for themselves from their respective employers. Their employers pay the premiums for the workers, and coverage for dependents is available if the worker pays the premium cost. They are trying to decide which policy to cover Bobby under for the upcoming year. The following is a brief description of their policies and projected medical expenses for Bobby.

	Tommy's HMO Coverage	Amanda's Major Medical Coverage
Maximum Limits	unlimited	$500,000/year/person
Deductible/Copayment	$20/doctor's visit, $50/emergency clinic visit, $15/prescription, $ 0/in-hospital charges	$500/year/person
Participation	not applicable	80/20 with a $2,500/year/person cap
Major exclusions	Dental and vision	Prescriptions, dental, and vision
Monthly premiums for dependents	$105/dependent/month	$90/dependent/month

Bobby is a healthy 8-year-old who is accident prone. Based on his past medical records, Tommy and Amanda expect the following covered medical costs for the year for their son, Bobby:
6 trips to the doctor--average cost of $75 per trip
2 trips to the emergency clinic--average cost of $300 per trip
1 broken bone--average cost of in-hospital surgery $1,250
12 prescriptions--average cost of $45 per prescription

What would the combined cost of premiums plus out-of-pocket medical costs be to cover Bobby under Tommy's HMO?

What would the combined cost of premiums plus out-of-pocket medical cost be to cover Bobby under Amanda's major medical plan?

Answer rating: 100% (QA)

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