Greg and Tanya Ridpath have two children, ages 6 years and 5 months. Their younger child, Ray, was born with a congenital heart defect that will require several major surgeries in the next few years to fully correct. Greg is employed as a salesperson for a major pharmaceutical firm, and Tanya is a stay-at-home mother. Greg's employer offers employees a choice between two health benefit plans:

1.) An indemnity plan that allows the Ridpaths to choose health services from a wide range of doctors and hospitals. The plan pays 80% of all medical costs, and the Ridpaths are responsible for the other 20% . There's a deductible of $500 per person. Greg's employer will pay 100% of the cost of this plan for Greg, but the Ridpaths will be responsible for paying $380 a month to cover Tanya and the children under this plan.

2.) A group HMO. If the Ridpaths choose this plan, the company still pays 100% of the plan's cost for Greg, but nsurance for Tanya and the children will cost $295 a month. They'll also have to make a $20 co-payment for any doctor's office visits and prescription drugs. They will be restricted to using the H M O's doctors and hospital for medical services.

Which plan would you recommend that the Ridpaths choose? Why? What other health coverage options should the Ridpaths consider?