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Gerald would like to add a dental and vision option to the health insurance plan he purchased through his employer. In addition to the $65 \%$ of Gerald's $\$345$ monthly health insurance premium, his employer has offered to pay $50 \%$ of a $\$38$ monthly dental premium and $75 \%$ of a $\$23$ monthly vision premium. If Gerald adds both the dental and vision options to his insurance plan, how much will he pay each month towards health insurance?




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Option		Monthly PremiumEmployer Contribution

Health Insurance		\$34565\%

Dental		\$3850\%

Vision		\$2375\%





A\$141.75
B\$145.50
C\$149.50
D\$260.50

Verified Answer :

  • Identify the employee contribution percentage for each plan: Health (35%), Dental (50%), Vision (25%).
  • Calculate the dollar amount for each: \(345 \times 0.35 = 120.75\), \(38 \times 0.50 = 19.00\), \(23 \times 0.25 = 5.75\).
  • Sum the individual payments: \(120.75 + 19.00 + 5.75 = 145.50\).
  • The total monthly payment is \(\boxed{\$145.50}\).

Explanation

  1. Analyzing the Insurance Plans and Gerald's Contributions

To determine how much Gerald will pay each month for his insurance, we must calculate his individual contribution for each plan (health, dental, and vision). Each plan has a total monthly premium and an employer contribution percentage. Gerald's share is the remaining portion of the premium that he is responsible for paying.

  • Health Insurance: The total premium is \(\$345\), and the employer covers \(65\%\). Gerald's share is \((100\% - 65\%) = 35\%\) of \(\$345\).
  • Dental Insurance: The total premium is \(\$38\), and the employer covers \(50\%\). Gerald's share is \((100\% - 50\%) = 50\%\) of \(\$38\).
  • Vision Insurance: The total premium is \(\$23\), and the employer covers \(75\%\). Gerald's share is \((100\% - 75\%) = 25\%\) of \(\$23\).
  1. Calculating Individual Monthly Payments

Now, we calculate Gerald's monthly cost for each service:

  • For Health Insurance:

\[345 \times 0.35 = 120.75\]
So, Gerald pays \(\$120.75\) per month for health insurance.

  • For Dental Insurance:

\[38 \times 0.50 = 19.00\]
So, Gerald pays \(\$19.00\) per month for dental insurance.

  • For Vision Insurance:

\[23 \times 0.25 = 5.75\]
So, Gerald pays \(\$5.75\) per month for vision insurance.

  1. Calculating Total Monthly Payment

To find the total amount Gerald pays each month, we sum his individual contributions for the health, dental, and vision plans:

\[120.75 + 19.00 + 5.75 = 145.50\]

Comparing this to the given options, we find that the total amount matches choice (b). Therefore, Gerald will pay \(\$145.50\) each month for his combined insurance plan. The final answer is \(\boxed{\$145.50}\).

Examples

Understanding how to calculate your personal share of insurance premiums is essential for personal financial management. Employers often offer benefits with varying contribution levels, and knowing how to factor in these percentages allows employees to accurately forecast their monthly expenses. This skill helps in budgeting effectively and making informed decisions about whether to add supplementary coverage like dental or vision, ensuring that you stay within your monthly budget while maintaining necessary health care.

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