2. Benefit of health insurance - A cautionary tale In 2016, Nick became responsible for providing his own health insurance. He obtained suitable coverage and paid annual premiums as shown in the following table. Compute Nick's total premiums: Nick's Premiums 2016 $4,479 4,704 2017 2018 4,824 2019 5,049 Total Except for an occasional minor illness requiring a doctor's attention, a drug prescription, and periodic, routine tests, Nick enjoyed good health during those years. Because he had no reason to think that would change, by the end of 2018, Nick was considering dropping his health insurance cover After all, he could think of a lot of other uses for the thousands of dollars he spent each year on increasing premiums. Nick decided to pay premium for another year but planned to take another look at his health care plan at the end of 2019, In December 2019, Nick accepted an invitation from friends to go snowboarding, Nick did everything right: took a lesson, stayed on trails well within his skill level, and maintained an awareness of people and objects near him. Even though he thought it was a bit dorky to wear wrist guards and a helmet, his friends insisted that he take standard and reasonable safety measures. Nick was enjoying the day when, from out of nowhere (actually, the woods), came an out of control skier who ran into Nick. Nick was injured and taken to the nearest hospital by ambulance. Nick's injuries included a broken wrist and elbow as well as cuts and bruises. Of biggest concern was the uncertainty of his head injury. Nick spent a couple of days in intensive care. Fortunately, he didn't have a broken skull, but did have a concussion. Surgery was performed to repair the broken wrist and elbow. Since Nick was in good health, his recovery was complete. Nick returned to full function in about six months. Soon after Nick returned home, however, the medical bills for the ambulance, emergency room, intensive care, medications, doctors, tests, and other services arrived. Nick also had to have physical therapy for his wrist and elbow. His 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, Nick's Insurance paid 80% of the total medical expenses, thus making him responsible for Nick's insurance paid % of the expenses, or His out of pocket expenses for the accident of 5 plus the 2019 insurance premiums of totaled In this If Nick had canceled his health insurance at the end of 2018, his out of pocket expenses for the accident would have been s case, did Nick benefit from having health insurance? Yes What are reasonable morals of the story? Check allt No O Don't get sick Neither, he broke even Avoid engaging in physical activity What are reasonable morals of the story? Check all that apply Don't get sick. Avoid engaging in physical activity Think long and hard about the best tradeoff of coverage and cost in a health care plan Your health can change in an instant. Never leave the house 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 Nick paid for his premiums in full that he had, instead, worked for a form that paid 25% of his premiums for the same coverage. Instead of paying premiums of S over the years, Nick would have paid $ and saved In this case, Nick's out-of-pocket expenses specific to his snowboarding accident would have been they actually were because Some employers pay part or all of the health insurance premiums for employees who are enrolled i less than pany's sponsored plans. Assume that during the same time period that Nick paid for his premiums in full that he had, instead, work the same as t paid 25% of his premiums for the same coverage. Instead of paying premiums of over the years, Nick would have and saved more than In this case, Nick's out-of-pocket expenses specific to his snowboarding accident would have been they actually were because employees who are enrolled in one of the company's sponsored plans. A the more premium his employer pays, the more coverage there is all that he had, instead, worked for a fum that pad 25of his premiums for the his employer only contributes to premiums the years, Nick would have paids and saved the more premium his employer pays, the less coverage there is ng accident would have been they actually wure because