Question

Alison's injuries included a broken wrist and elbow as well as cuts and bruises. Of biggest concern was the uncertainty of her head injury. Alison spent a couple of days in intensive care. Fortunately, she didn't have a broken skull, but did have a concussion. Surgery was performed to repair the broken wrist and elbow. Since Alison was in good health, her recovery was complete. Alison returned to full function in about six months. Soon after Alison returned home, however, the medical bills for the ambulance, emergency room, intensive care, medications, doctors, tests, and other services arrived. Alison also had to have physical therapy for her wrist and elbow. Her total medical expenses were $35,000. It was time to find out if all those premiums paid since 2012 would pay off for just one, albeit dramatic, incident. Overall, Alison's insurance paid 75% of the total medical expenses, thus making her responsible for expenses, or $ % of the . Alison's insurance paid $ Her out-of-pocket expenses for the accident of $ totaled $ plus the 2015 insurance premiums of $ If Alison had canceled her health insurance at the end of 2014, her out-of-pocket expenses for the accident would have been $ . In this case, did Alison benefit from having health insurance? What are reasonable morals of the story? Check all that apply. Don't get sick Never leave the house. It can be financially risky to go without health insurance Think long and hard about the best tradeoff of coverage and cost in a health care plan. Your health can change in an instant. Some employers pay part or all of the health insurance premiums for employees who are enrolled in one of the company's sponsored plans. Assume that during the same time period that Alison paid for her premiums in full that she had, instead, worked for a firm that paid 75% of her premiums for the same coverage. Instead of paying premiums of $ over the years, Alison would have paid $ and saved$

Answer 1

As per rules I am answering the first 4 subparts of the question

1: 25%; 8750, 26250

(She will pay balance 25%. Which is 35000*25% = 8750

Insurance co will pay 35000*75% = 26250

2: 8750, 5049 , 13799

(Alison’s share = 8750, Premium = 5049)

3: 35000

(Without insurance she would have paid the entire bill)

4: Options 3,4 and 5 are true

It can cause a financial loss to be without health insurance. Also health is volatile.