Question

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

1. Which plan do you recommend to her? Justify your recommendation showing the correct math.

2. Turns out for the year, Mandy visited the doctor 3 times and her bills were: $400 for first visit, $1,750 for second visit with x-rays, and $6,500 for outpatient surgery to remove two cysts and mole from her back. For both policies (Blue Cross and Humana) determine her share of the costs and the amount covered by insurance. (Show all your math)

Answer 1

Book2 - Microsoft Excel FILE FORMULAS DATA REVIEW VIEW HOME INSERT PAGE LAYOUT Cut Calibri 11 Copy Format Painter BI D A A A === On Wrap Text General ? - Thanuja Koppuravuri AutoSum - A Fill- Sort & Find & Clear Filter - Select Editing Paste S E Merge & Center - $ % 4808 Insert Delete Format Conditional Format as Cell Formatting Table Styles Styles Clipboard Font Alignment Number Cells fic E2X ДА 1 A) G H I J K L M B) Particulars Blue cross Human- - Plan A Plan B Particulars Human Plan B Blue cross- Plan A $ 400 $ 400 $ - Annual Medical Expenses on Average Deductible Remaining Amount $ 16,000 $ 3,500 $ 12,500 $16,000 $ 4,000 Paid by sandy $ 12,000 1st visit Bill Deductible Remaining Amount $ 400 $ 400 Paid by sandy $ - Paid by Insurance Company $1,750 $1,750 $ - $1,750 Paid by sandy $1,750 $ - Paid by Insurance Company $6,500 $6,500 Coinsurance (maximum out of pocket) $ 3,500 $ 2,400 Paid by sandy 2nd Visit Bill Remaining Amount $ 9,000$ 9,600 Paid by Insurance Company Deductible Total Premium paid $ 3,900 $ 4,800 Remaining Amount Net Benefit to sandy $ 5,100 $ 4,800 3rd Visit Bill As per above calculation, Blue cross plan A is better option compared to Plan B Deductible Remaining Amount Coinsurance Charges Remaining Amount $3,500 $4,000 Paid by sandy $3,000 $2,500 $ 900 $ 500 Paid by sandy $ 2,100 $2,000 Paid by Insurance Company Total Amount paid by sandy $ 6,550 Total Amount paid Paid by Insurance Comp $2,100 $6,650 $2,000 Sheet1 Sheet2 + READY - | w | op | | ^ | ) -+ 100% CUAM F. Type here to search te A 9 O M x ] © EN

Formula Spreadsheet

Book2 - Microsoft Excel ? - FILE FORMULAS DATA REVIEW VIEW A A === On Wrap Text General HOME INSERT PAGE LAYOUT % Cut Calibri 11 Copy - Format Painter Daint B I U - - Clipboard Font Thanuja Koppuravuri AutoSum - A Fill- Sort & Find & Clear Filter - Select Editing Paste - A E Merge & Center - $ % 48.09 Insert Delete Format Conditional Format as Cell Formatting - Table Styles Styles Alignment Number Cells B16 - X for 1 Particulars Blue cross - Plan A Human - Plan B Particulars Blue cross - Plan A Human - Plan B Annual Medical Expenses on Average Deductible Remaining Amount 16000 4000 =+D3-D4 3500 =+C3-C4 Paid by sandy 1st visit Bill Deductible Remaining Amount 400 400 =+G3-64 400 400 =+H3-H4 Paid by sand Paid by Insul 1750 Paid by sand Coinsurance (maximum out of pocket) 3500 Remaining Amount +C5-C7 Total Premium paid =325*12 Net Benefit to sandy =+C8-09 =+D5*20% =+D5-D7 =400*12 =+D8-D9 Paid by sandy 2nd Visit Bill Paid by Insurance Company Deductible Remaining Amount =+G7 =+G7-G8 1750 =+H7 =+H7-H8 Paid by Insul 3rd Visit Bill 6500 6500 As per above calculation, Blue cross plan A is better option compared to Plan Paid by sand Deductible Remaining Amount Coinsurance Charges Remaining Amount 3500 =+G11-G12 =+G13*30% =+G13-614 |4000 =+H11-H12 =+H13*20% Paid by sand Paid by Insul Total Amount paid by sandy =+G4+G7+G12+G14 =+H4+H7+H12+H14 Total Amount paid Paid by Insurance Company |=+G5+G9+G15 |=+H5+H9+H15 Sheet1 Sheet2 + : READY + @ wil ^ -- ENG ENG 100% – 2:02 AM Type here to search 0 te Ao O M x] IN 10/1/2019