Question

Merritt Engineering, Inc. - 2022 Healthcare Plan Annual Rates DEDUCTIBLE (annual) ONLY FAMILY $5,286.48 Notes on Columns: - Assume annual wages are the total for annual income. - County is Monroe. - Assume no one uses tobacco, and no health insurance is available from a spouse. - Assume all adults are age 25 years and all kids are age 5 years. Look on the ACA exchange options and find the annual premium of the closest plan (in terms of deductibles and coinsurance). Multiply column J with the income in column D. If they get no protection from the marketplace, they must pay the full premium listed in the ACA exchange options. On neL, how much do they gain financially if Merritt drops health insurance and gives the workers the equivalent of premiums in wages? Look for an option that seems close to Merritt health plan on deductible and cost sharing. Merritt Engineering, Inc. - 2022 Healthcare Plan Annual Rates DEDUCTIBLE (annual) Single: $1,500 Family: $4,500 COINSURANCE 20% paid by enrollee after deductible MAX OUT OF POCKET (annual) Single: $5,000 Family: $10,000 TOTAL ANNUAL PREMIUM - all paid by the employer EMPLOYEE ONLY FAMILY $5,286.48 Notes on Columns: - Assume annual wages are the total for annual income. - County is Monroe. - Assume no one uses tobacco, and no health insurance is available from a spouse. - Assume all adults are age 25 years and all kids are age 5 years. Look on the ACA exchange options and find the annual premium of the closest plan (in terms of deductibles and coinsurance). Multiply column J with the income in column D. If they get no protection from the marketplace, they must pay the full premium listed in the ACA exchange options. On neL, how much do they gain financially if Merritt drops health insurance and gives the workers the equivalent of premiums in wages? Look for an option that seems close to Merritt health plan on deductible and cost sharing.

          Merritt Engineering, Inc. - 2022 Healthcare Plan Annual Rates

DEDUCTIBLE (annual)
ONLY FAMILY $5,286.48

Notes on Columns:
- Assume annual wages are the total for annual income.
- County is Monroe.
- Assume no one uses tobacco, and no health insurance is available from a spouse.
- Assume all adults are age 25 years and all kids are age 5 years.

Look on the ACA exchange options and find the annual premium of the closest plan (in terms of deductibles and coinsurance).

Multiply column J with the income in column D. If they get no protection from the marketplace, they must pay the full premium listed in the ACA exchange options.

On neL, how much do they gain financially if Merritt drops health insurance and gives the workers the equivalent of premiums in wages? Look for an option that seems close to Merritt health plan on deductible and cost sharing.

Merritt Engineering, Inc. - 2022 Healthcare Plan Annual Rates

DEDUCTIBLE (annual)
Single: $1,500
Family: $4,500

COINSURANCE
20% paid by enrollee after deductible

MAX OUT OF POCKET (annual)
Single: $5,000
Family: $10,000

TOTAL ANNUAL PREMIUM - all paid by the employer
EMPLOYEE ONLY FAMILY $5,286.48

Notes on Columns:
- Assume annual wages are the total for annual income.
- County is Monroe.
- Assume no one uses tobacco, and no health insurance is available from a spouse.
- Assume all adults are age 25 years and all kids are age 5 years.

Look on the ACA exchange options and find the annual premium of the closest plan (in terms of deductibles and coinsurance).

Multiply column J with the income in column D. If they get no protection from the marketplace, they must pay the full premium listed in the ACA exchange options.

On neL, how much do they gain financially if Merritt drops health insurance and gives the workers the equivalent of premiums in wages? Look for an option that seems close to Merritt health plan on deductible and cost sharing.
        
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Horngren’s Cost Accounting
Horngren’s Cost Accounting
Srikant M. Datar, Madhav V. Rajan 16th Edition
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Merritt Engineering, Inc. - 2022 Healthcare Plan Annual Rates DEDUCTIBLE (annual) ONLY FAMILY $5,286.48 Notes on Columns: - Assume annual wages are the total for annual income. - County is Monroe. - Assume no one uses tobacco, and no health insurance is available from a spouse. - Assume all adults are age 25 years and all kids are age 5 years. Look on the ACA exchange options and find the annual premium of the closest plan (in terms of deductibles and coinsurance). Multiply column J with the income in column D. If they get no protection from the marketplace, they must pay the full premium listed in the ACA exchange options. On neL, how much do they gain financially if Merritt drops health insurance and gives the workers the equivalent of premiums in wages? Look for an option that seems close to Merritt health plan on deductible and cost sharing. Merritt Engineering, Inc. - 2022 Healthcare Plan Annual Rates DEDUCTIBLE (annual) Single: $1,500 Family: $4,500 COINSURANCE 20% paid by enrollee after deductible MAX OUT OF POCKET (annual) Single: $5,000 Family: $10,000 TOTAL ANNUAL PREMIUM - all paid by the employer EMPLOYEE ONLY FAMILY $5,286.48 Notes on Columns: - Assume annual wages are the total for annual income. - County is Monroe. - Assume no one uses tobacco, and no health insurance is available from a spouse. - Assume all adults are age 25 years and all kids are age 5 years. Look on the ACA exchange options and find the annual premium of the closest plan (in terms of deductibles and coinsurance). Multiply column J with the income in column D. If they get no protection from the marketplace, they must pay the full premium listed in the ACA exchange options. On neL, how much do they gain financially if Merritt drops health insurance and gives the workers the equivalent of premiums in wages? Look for an option that seems close to Merritt health plan on deductible and cost sharing.
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Transcript

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00:01 In this question for the first part, total opted for health plan is equal to 250.
00:18 Employees with no dependents is equal to 100.
00:35 Employees with one dependent is equal to 80.
00:45 Employees with multiple dependent is equal to 70.
00:53 For no dependence, premium is $1 ,200 amount company has to pay.
01:02 Premium is equals to $1 ,200 amount company has to pay is equals to $8 ,400 ,840 for each employee...
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