Question

Andrew Shapiro has a single membership in his company’s medical insurance program. The total cost is $5,360 annually and his employer pays 75% of the total cost. He also pays for the optional annual dental premium of $600 and the optional vision premium of $200 per year. His contribution is deducted monthly from his paycheck. How much is Andrew’s monthly deduction?

Answer 1

$178,33

Explanation:

Let's calculate Andrew's total yearly costs first.

The cost of the program is $5,360 annually, which is paid at 75% by the employer.

So, how much does the basic plan costs to Andrew per year?

He has to pay the remaining 25% so 25% of $5,360 is $1,340

He then chose to enroll in the dental and vision premium plans:

Dental: $600

Vision: $200

So, in total, Andrew's costs are $1,340 + $600 + $200 = $2,140

Assuming he pays that in equal payments each month, his monthly cost/deduction will be: $2,140 / 12 = $178,33