Q24

Latesha Moore has a choice at work between a traditional health insurance plan that pays 80 percent of the cost of doctor visits after a $250 deductible and an HMO that charges a

$5

co-payment per visit plus a

$18

monthly premium deduction from her paycheck. Latesha anticipates seeing a doctor once a month for her high blood pressure. The cost of each office visit is

$80.

She normally sees the doctor an average of three times a year for other health concerns. Comment on the difference in costs between the two health care plans and the advantages and disadvantages of each.

Latesha would pay an annual out-of-pocket cost with the traditional plan of

$nothing.

(Round to the nearest dollar.)Latesha would pay an annual out-of-pocket cost with the HMO plan of

$nothing.

(Round to the nearest dollar.)Latesha would pay more out-of-pocket cost with the

plan.(Select from the drop-down menu.)