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# Choosing an insurance plan

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Acme Health has three plans it offers to mid-size employers.

1.This basic one costs \$4,000 for the employee this year, plus \$2,500 for the spouse, and \$2,500 for any number of children. It also has a family deductible amount of \$2,000 before benefits (80% paid; 20% co-insurance) kick in.
2.The second plan costs \$5,000 for the employee and \$3,000 for a spouse and an additional amount of \$3,000 to any number of children. It has a \$1,000 family deductible and after that, insurance of 85%, 15% co-insurance.
3.The third plan costs \$7,000 for the employee and \$3,500 for the spouse and \$3,500 for children. It has a \$250 deductible for the total family each year. After that, insurance pays 95%, with 5% co-insurance.

As an employee of the company, which option would you take? Explain your answer.

Consider the probability of using the health services, the total expected cost of the co-payments, and the tax status of all of the expenses.

HINT: The premiums (\$9,000, \$11,000, or \$14,000) can be paid with pretax dollars, as an income tax avoidance method. In all three cases, the employer pays nothing.

https://brainmass.com/health-sciences/health-care-management/choosing-an-insurance-plan-587082

#### Solution Preview

Choosing a Health Plan

1.This basic one costs \$4,000 for the employee this year, plus \$2,500 for the spouse, and \$2,500 for any number of children. It also has a family deductible amount of \$2,000 before benefits (80% paid; 20% co-insurance) kick in.
2.The second plan costs \$5,000 for the employee and \$3,000 for a spouse and an additional amount of \$3,000 to any number of children. It has a \$1,000 family deductible and after that, insurance of 85%, 15% co-insurance.
3.The third plan costs \$7,000 for the employee and \$3,500 for the spouse and \$3,500 for children. It has a \$250 deductible for the total family each year. After that, insurance ...

#### Solution Summary

Choosing a health care plan can be very difficult. The first thing you should consider is the deductible; the money that you have to pay out of pocket before the insurance benefits kick in. As general rule, the higher the deductibles, the less premium you paid monthly. Choose a plan with the highest deductible will save you money in the long run.

\$2.19

## Medical Insurance Plans

I would like a person who has medical or health insurance background for this problem.

Please give me an example tutorial that I could use for my future classes. Thank you.

How would I compare two insurance companies that offer managed care plans - Health Maintenance Organization (H.M.O.), and Preferred Provider Organization (P.P.O.),

a. What are the similarities in what they offer?
b. What are the differences in what they offer?
c. What are the member/patient incentives?
d. What are the innovations promoted?
e. What are the facilities and patient satisfaction practices?
f. does either have provider incentives and what are they

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