Originally, hmos ppos and traditional forms of indemnity health insurance were distinct, mutually exclusive products and mechanisms for providing health care converge. today, an observer may be hard pressed to uncover the differences among product that bill themselves as hmos, ppos or managed care overlays to health insurances.

Trey morgan is an employee who is paid monthly. for the month of january of the current year, he earned a total of $4,538. the fica tax for social security is 6.2% of the first $118,500 earned each calendar year, and the fica tax rate for medicare is 1.45% of all earnings for both the employee and the employer. the amount of federal income tax withheld from his earnings was $680.70. his net pay for the month is .