1.14. In the early 2000s, Whole Foods Market Inc. switched to a medical care plan that had a high deductible, which meant that employees were responsible for the first $1,500 of care, whereas after that they received 80 percent coverage.

The firm also put about $800 in an account for each employee to use for medical care. If employees did not use this money, they could carry it over to the next year.

a. What do you expect happened to medical claim costs?

b. What do you believe happened to hospital admissions?

c. Demonstrate graphically the reasons for your answers in a and b.