What other health coverage options should ridpaths consider

Assignment Help Microeconomics

Reference no: EM13224667

Greg and Tanya Ridpath have two children, ages 6 years and 5 months. Their younger child, Ray, was born with a congenital heart defect that will require several major surgeries in the next few years to fully correct. Greg is employed as a salesperson for a major pharmaceutical firm, and Tanya is a stay-at-home mother. Greg's employer offers employees a choice between two health benefit plans:

1.) An indemnity plan that allows the Ridpaths to choose health services from a wide range of doctors and hospitals. The plan pays 80% of all medical costs, and the Ridpaths are responsible for the other 20% . There's a deductible of $500 per person. Greg's employer will pay 100% of the cost of this plan for Greg, but the Ridpaths will be responsible for paying $380 a month to cover Tanya and the children under this plan.

2.) A group HMO. If the Ridpaths choose this plan, the company still pays 100% of the plan's cost for Greg, but nsurance for Tanya and the children will cost $295 a month. They'll also have to make a $20 co-payment for any doctor's office visits and prescription drugs. They will be restricted to using the H M O's doctors and hospital for medical services.

Which plan would you recommend that the Ridpaths choose? Why? What other health coverage options should the Ridpaths consider?

Reference no: EM13224667

Questions Cloud

What is the standard deviation of demand during lead time : What is the standard deviation of the demand during lead time? (recall from statistics that standard deviation is equal to the square root of variance and also that there are only rules for variances).

Compelling arguments and counter arguments : Consider the strategies Simon Elegant used in his article to support his thesis with compelling arguments and counter arguments

When ibm sold its personal computer business to lenovo : When IBM sold its personal computer business to Lenovo, one analyst remarked that the PC business was "a corner of the technology market where few companies have been able to generate consistent profits." This low-profit result would be expected i..

What is the total holding cost per year : What is the total holding (carrying) cost per year under the optimal inventory management policy?

What other health coverage options should ridpaths consider : Greg and Tanya Ridpath have two children, ages 6 years and 5 months. Their younger child, Ray, was born with a congenital heart defect that will require several major surgeries in the next few years to fully correct. Greg is employed as a salesperson..

Explain electric dipole moment in one dimension : (a) electric dipole moment in one dimension (b)the mean square deviations of the position and momentum of a particle in one dimension from the mean values.

What is the assumed ordering cost : Annual holding cost is $3 per slicon chip. The optimal ordering quantity is 1600 chips per order. What is the assumed ordering cost, i.e. S ?

Policy implications of social development theories : What are the policy implications of social development theories? How have these implications been reflected in actual policy, if at all?

Explain which element would be left partially unreacted : What is the maximum mass of ammonia that can be produced from a mixture of 155.3 g of N2 and 35.98 g of H2? 2. Which element would be left partially unreacted? (enter nitrogen or hydrogen)

User Account

All Pages