Explanation help on homwork?

I have this homework that I dont get, I have the answer, and the way the book tells how to do it is kind of confusing, please help: Ronald Roth started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contains information on the company’s health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross/Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program fits his needs. The following is an overview of that information. a. Blue Cross/Blue Shield plan: The monthly premium cost to Ronald will be $58.75. For all doctor office visits, prescriptions, and major medical charges, Ronald will be responsible for 15 percent and the insurance company will cover 85 percent of covered charges. The annual deductible is $820. b. The HMO is provided to employees free of charge. The copayment for doctors’ office visits and major medical charges is $15. Prescription copayments are $10. The HMO pays 100 percent after Ronald’s copayment. No annual deductible. c. The POS requires that the employee pay $40.96 per month to supplement the cost of the program with the company’s payment. If Ron uses health care providers within the plan, he pays the copayments as described above for the HMO. He can also choose to use a health care provider out of the service and pay 15 percent of all charges after he pays a $820 deductible. The POS will pay for 85 percent of those covered visits. No annual deductible. Ronald decided to review his medical bills from the previous year to see what costs he had incurred and to help him evaluate his choices. He visited his general physician four times during the year at a cost of $205 for each visit. He also spent $81 and $105 on prescriptions during the year. If Ronald selects the POS plan and his doctor is out of the network but, the prescription are filled at a network-approved pharmacy, what would his annual medical costs be? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer: $1,331.52 ($491.52 in annual premiums, $820 deductible for out-of-plan office visits, and $20 for prescriptions) Also: Ronald Roth started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contains information on the company’s health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross/Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program fits his needs. The following is an overview of that information. a. Blue Cross/Blue Shield plan: The monthly premium cost to Ronald will be $48.48. For all doctor office visits, prescriptions, and major medical charges, Ronald will be responsible for 35 percent and the insurance company will cover 65 percent of covered charges. The annual deductible is $630. b. The HMO is provided to employees free of charge. The copayment for doctors’ office visits and major medical charges is $15. Prescription copayments are $10. The HMO pays 100 percent after Ronald’s copayment. No annual deductible. c. The POS requires that the employee pay $30.64 per month to supplement the cost of the program with the company’s payment. If Ron uses health care providers within the plan, he pays the copayments as described above for the HMO. He can also choose to use a health care provider out of the service and pay 35 percent of all charges after he pays a $630 deductible. The POS will pay for 65 percent of those covered visits. No annual deductible. Ronald decided to review his medical bills from the previous year to see what costs he had incurred and to help him evaluate his choices. He visited his general physician six times during the year at a cost of $105 for each v