1. Benefit of health insurance - A cautionary tale In 2016, Megan became responsible for providing her own health insurance. She obtained suitable coverage and paid annual premiums as shown in the following table. Compute Megan's total premiums: Megan'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, Megan enjoyed good health during those years. Because she had no reason to think that would change, by the end of 2018, Megan 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. Megan 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, Megan accepted an invitation from friends to go snowboarding. Megan 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. Megan was enjoying the day when, from out of nowhere (actually, the woods), came an out of control skler who ran into Megan. Megan was injured and taken to the nearest hospital by ambulance. Megan's injuries included a broken wrist and elbow as well as cuts and bruises. Of biggest concern was the uncertainty of her head injury. Megan 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 Megan was in good health, her recovery was complete. Megan returned to full function in about six months. Soon after Megan returned home, however, the medical bills for the ambulance, emergency room, intensive care, medications, doctors, tests, and other services arrived. Megan also had to have physical therapy for her wrist and elbow. Her total medical expenses were $40,000. It was time to find out if all those premiums paid since 2016 would pay off for just one, albeit dramatic, incident. Overall, Megan's insurance paid 75% of the total medical expenses, thus making her responsible for Megan's insurance paid $ % of the expenses, or Overall, Megan's insurance paid 75% of the total medical expenses, thus making her responsible for Megan's insurance paid $ Her out-of-pocket expenses for the accident of 5 plus the 2019 insurance premiums of S If Megan had canceled her health insurance at the end of 2018, her out-of-pocket expenses for the accident would have been 5 case, did Megan benefit from having health insurance? What are reasonable morals of the story? Check all that apply. Your health can change in an instant. Don't get sick. Avoid engaging in physical activity. 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. % of the expenses, or In this case, Megan's out-of-pocket expenses specific to her snowboarding accident would have been totaled $ In this 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 Megan 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 5 over the years, Megan would have paid 3 and saved they actually were because Megan's injuries incl 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 Megan was in good health, her recovery was complete. Megan returned to full function in about six months. Soon after Megan returned home, however, the medical bills for the ambulance, emergency room, intensive care, medications, doctors, tests, and other services arrived. Megan also had to have physical therapy for her wrist and elbow. Her total medical expenses were $40,000. It was time to find out if all those premiums paid since 2016 would pay off for just one, albeit dramatic, incident. Overall, Megan's Insurance paid 75% of the total medical expenses, thus making her responsible for . Megan's insurance paid S Her out-of-pocket expenses for the accident of $1 What are reasonable morals of the story? Check all that Your health can change in an instant. plus the 2019 insurance premiums of $ If Megan had canceled her health insurance at the end of 2018, her out-of-pocket expenses for the accident would have been S case, did Megan benefit from having health insurance? Don't get sick. Yes Neither, she broke event No Avoid engaging in physical activity. 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. % of the expenses, or totaled $ In this case, Megan's out-of-pocket expenses specific to her snowboarding accident would have been i In this 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 Megan 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 S I over the years, Megan would have paid $ and saved they actually were because- Megan's injuries included a broken wrist and elbow as well as cuts and bruises. Of biggest concern was ERE 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 Megan was in good health, her recovery was complete. Megan returned to full function in about six months. Soon after Megan returned home, however, the medical bills for the ambulance, emergency room, intensive care, medications, doctors, tests, and t other services arrived. Megan also had to have physical therapy for her wrist and elbow. Her total medical expenses were $40,000. It was time to find out if all those premiums paid since 2016 would pay off for just one, albeit dramatic, incident. Overall, Megan's insurance paid 75% of the total medical expenses, thus making her responsible for Megan's Insurance paid 5 $ Her out-of-pocket expenses for the accident of plus the 2019 insurance premiums of S What are reasonable morals of the story? Check all that apply. If Megan had canceled her health insurance at the end of 2018, her out-of-pocket expenses for the accident would have been S case, did Megan benefit from having health insurance? Your health can change in an instant. Don't get sick. Avoid engaging in physical activity. 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. Some employers pay part or all of the health insurance premiums for employees who are enrolled in of less than that during the same time period that Megan paid for her premiums in full that she had, instead, work the same coverage. Instead of paying premiums of S over the years, Megan would hay the same as more than % of the expenses, or In this case, Megan's out-of-pocket expenses specific to her snowboarding accident would have been totaled S In this any's sponsored plans. Assume at paid 75% of her premiums for and saved they actually were because Assignment: Chapter 09 Insuring Your Health Megan's injuries included a broken wrist and elbow as well as cuts and bruises. Of biggest concern was the uncertainty of her head injury, Megan 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 Megan was in good health, her recovery was complete: Megan returned to full function in about six months. Soon after Megan returned home, however, the medical bills for the ambulance, emergency room, intensive care, medications, doctors, tests, and other services arrived. Megan also had to have physical therapy for her wrist and elbow. Her total medical expenses were $40,000. It was time to find out if all those premiums paid since 2016 would pay off for just one, albeit dramatic, incident. Overall, Megan's insurance paid 75% of the total medical expenses, thus making her responsible for $ Megan's insurance paid 5 Her out-of-pocket expenses for the accident of S If Megan had canceled her health insurance at the end of 2018, her out-of-pocket expenses for the accident would have been S case, did Megan benefit from having health insurance? plus the 2019 insurance premiums of What are reasonable morals of the story? Check all that apply. Your health can change in an instant. Don't get sick. Avoid engaging in physical activity. 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. % of the expenses, or her employer only contributes to premiums the more premium her employer pays, the more coverage there is the more premium her employer pays, the less coverage there is ding accident would have been totaled 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 full that she had, instead, worked for a firm that paid 75% of her premiums for over the years, Megan would have paid and saved In this they actually were because