1. Benefit of health insurance- A cautionary tale In 2016, Crystal became responsible for providing her own health insurance. She obtained suitable coverage and paid annual premiums as shown in the following table. Compute Crystal's total premiums: Crystal's Premiums 2016 2017 2018 2019 Total $4,479 4,704 4,824 5,049 Except for an occasional minor illness requiring a doctor's attention, a drug prescription, and periodic, routine tests, Crystal enjoyed good health during those years. Because she had no reason to think that would change, by the end of 2018, Crystal was considering dropping her health insurance coverage. After all, she could think of a lot of other uses for the thousands of dollars she spent each year on increasing premiums. Crystal decided to pay premiums for another year but planned to take another look at her health care plan at the end of 2019. It Could Happen to You, It Could Happen to Me In December 2019, Crystal accepted an invitation from friends to go snowboarding. Crystal did everything right: took a lesson, stayed on trails well within her skill level, and maintained an awareness of people and objects near her. Even though she thought it was a bit dorky to wear wrist guards and a helmet, her friends insisted that she take standard and reasonable safety measures. Crystal was enjoying the day when, from out of nowhere (actually, the woods), came an out of control skier who ran into Crystal. Crystal was injured and taken to the nearest hospital by ambulance. Assignment: Chapter 09 Insuring Your Health Crystal's injuries included a broken wrist and elbow as well as cuts and bruises. Of biggest concern was the uncertainty of her head injury. Crystal 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 Crystal was in good health, her recovery was complete. Crystal returned to full function in about six months. Soon after Crystal returned home, however, the medical bills for the ambulance, emergency room, intensive care, medications, doctors, tests, and other services arrived. Crystal also had to have physical therapy for her wrist and elbow. Her total medical expenses were $30,000. It was time to find out if all those premiums paid since 2016 would pay off for just one, albeit dramatic, incident. Overall, Crystal's insurance paid 75% of the total medical expenses, thus making her responsible for Crystal's insurance paid $ Her out-of-pocket expenses for the accident of $ What are reasonable morals of the story? Check all that apply. plus the 2019 insurance premiums of If Crystal had canceled her health insurance at the end of 2018, her out-of-pocket expenses for the accident would have been S this case, did Crystal benefit from having health insurance? Think long and hard about the best tradeoff of coverage and cost in a health care plan. Never leave the house.. Don't get sick. O Your health can change in an instant. 20 Avoid engaging in physical activity. % of the expenses, or totaled S In 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 Crystal paid for her premiums in full that she had, instead, worked for a firm that paid 50% of her premiums for the same coverage. Instead of paying premiums of over the years, Crystal would have paid and saved 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 Crystal paid for her premiums in full that she had, instead, worked for a firm that paid 50% of her premiums for the same coverage. Instead of paying premiums of S over the years, Crystal would have paid S and saved $ h In this case, Crystal's out-of-pocket expenses specific to her snowboarding accident would have been they actually were because