Reference no: EM132447092
The Mighty Machinery Company subscribes to the Healthy Family Medical Organization. Monthly insurance premiums are: employee without dependents, $350; employee with one dependent, $450; employee with multiple dependents, $550.
The Mighty Machinery Company pays a large part of the premiums for participating employees and their dependents. Participating employees have deducted from their paychecks every month $40 from an employee without dependents, $80 from an employee with one dependent, and $100 from an employee with multiple dependents.
The Healthy Family Medical Organization has a deductible of $300 per year for an employee with no dependents, $450 per year for an employee with one dependent, and $600 per year for an employee with multiple dependents. The organization pays 80% of all medical bills in excess of the deductible.
1. An employee with 3 dependents participates in the company health plan. Referring to the information above, compute the amount deducted from the employee's wage in one year.
2. Epstein and her spouse are covered by the company health plan. Last year their doctor bills totaled $335. Referring to the information above, compute the amount Epstein paid for medical coverage and care last year herself and one dependent.
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