You are shopping for health insurance. Flightline Insurance offers two plans: Plan A: You would pay...
Your college friend, Sandy, has two health insurance offers to cover her medical expenses. She expects to have annual medical expenses of $16,000 on average. Given the information below, help her select the best plan to minimize her total cost. Blue Cross Plan A Humana Plan B Deductible $3,500 $4,000 Limit $7,000 Out-of-Pocket Max $9,000 Out-of-pocket Max Coinsurance 70/30 80/20 Monthly Premium $325 $400 Which plan do you recommend to her? Justify your recommendation showing the correct math. Turns out...
1. Health savings accounts (HSAs) allow consumers to purchase a high- deductible health insurance plan and pay for the medical expenditures they incur prior to satisfying the deductible with tax-sheltered health savings. Advocates argue that this model gives consumers a strong incentive to shop for lower-priced, high-value medical care. Based on the analysis of selective contracting, under what conditions would consumers be successful in negotiating lower provider prices? 2. Medicaid programs have adopted managed care for the provision of care...
Your financial planner offers you two different investment plans. Plan X is a $10,000 annual perpetuity. Plan Y is a 12-year, $20,000 annual perpetuity. Both plans will make their first payment from one year today. At what discount rate would you be indifferent between these two plans?
Your financial planner offers you two different investment plans. Plan X is an annual perpetuity of $10,000. Plan Y is an annuity for 16 years and an annual payment of $25,000. Both plans will make their first payment one year from today. At what discount rate would you be indifferent between these two plans? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Becky's comprehensive major medical health insurance plan at work has a deductible of $740. The policy pays 65 percent of any amount above the deductible. While on a hiking trip, Becky contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and a five-day hospital stay, totaled $9,253. A friend told her that she would have paid less if she had a policy with a stop-loss feature that capped her out-of-pocket expenses at $4,800. a. Calculate the...
Becky’s comprehensive major medical health insurance plan at work has a deductible of $820. The policy pays 80 percent of any amount above the deductible. While on a hiking trip, Becky contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and a nine-day hospital stay, totaled $9,033. A friend told her that she would have paid less if she had a policy with a stop-loss feature that capped her out-of-pocket expenses at $3,700. a. Calculate the...
Becky’s comprehensive major medical health insurance plan at work has a deductible of $720. The policy pays 85 percent of any amount above the deductible. While on a hiking trip, Becky contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and a four-day hospital stay, totaled $9,213. A friend told her that she would have paid less if she had a policy with a stop-loss feature that capped her out-of-pocket expenses at $4,600. a. Calculate the...
Problem 13-13 Payroll-related liabilities [Appendix] Alamar Petroleum Company offers its employees the option of contributing retirement funds up to 5% of their wages or salaries, with the contribution being matched by Alamar. The company also pays 80% of medical and life insurance premiums. Deductions relating to these plans and other payroll information for the first biweekly payroll period of February are listed as follows Wages and salaries Employee contribution to voluntary retirement plan Medical insurance premiums Life insurance premiums Federal...
You are considering two salary offers. The first one will pay you $80,000 a year for two years. The second one will pay you $60,000 a year for two years and an $35,000 additional bonus, paid today. The salaries would be paid in a lump sum at the end of each year. If the interest rate is 5%, compounded monthly, which is the better offer?
You are considering two salary offers. The first one will pay you $80,000 a year for two years. The second one will pay you $60,000 a year for two years and an $35,000 additional bonus, paid today. The salaries would be paid in a lump sum at the end of each year. If the interest rate is 5%, compounded monthly, which is the better offer?