2. Benefit of health insurance - A cautionary tale In 2016, Kenji became responsible for providing his own health insurance. He obtained suitable coverage and paid annual premiums as shown in the following table. Compute Kenji's total premiums: Kenji's Premiums 2016 $4,479 2017 4,704 4,824 2018 2019 Total 5,049 $ Except for an occasional minor illness requiring a doctor's attention, a drug prescription, and periodic, routine tests, Kenji enjoyed good health during those years. Because he had no reason to think that would change, by the end of 2018, Kenji was considering dropping his health insurance coverage. After all, he could think of a lot of other uses for the thousands of dollars he spent each year on increasing premiums. Kerji decided to pay premiums for another year but planned to take another look at his health care plan at the end of 2019. It Could Happen to You, It Could Happen to Me In December 2019, Kenji accepted an invitation from friends to go snowboarding, Kenji 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 tintmnt his friends insisted that he take standard and reasonable safety measures. It Could Happen to You, It Could Happen to Me In December 2019, Kenji accepted an invitation from friends to go snowboarding, Kenji 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. Kenji was enjoying the day when, from out of nowhere (actually, the woods), came an out of control skler who ran into Kenji. Kenji was injured and taken to the nearest hospital by ambulance. Kenji's injuries included a broken wrist and elbow as well as cuts and bruises. Of biggest concern was the uncertainty of his head injury. Kenji 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 Kenji was in good health, his recovery was complete. Kenji returned to full function in about six months Soon after Kenji returned home, however, the medical bills for the ambulance, emergency room, Intensive care, medications, doctors, tests, and other services arrived. Kenji also had to have physical therapy for his wrist and elbow. His total medical expenses were $35,000. It was time to find out if all those premiums pald since 2016 would pay off for just one, albeit dramatic, Incident. % of the expenses, or Overall , Kenji's insurance paid 80% of the total medical expenses, thus making him responsible for Kenji's insurance paid 5 His Out-of-pocket expenses for the accident of 5 plus the 2019 Insurance premiums of 5 totaled s In this If Kenji had canceled his health insurance at the end of 2018, his out-of-pocket expenses for the accident would have been 5 case, did Kenji benefit from having health insurance? What are reasonable morals of the story? Check all that apply. If Kenji had canceled his health insurance at the end of 2018, his out-of-pocket expenses for the accident would have been case, did Kenji benefit from having health insurance? In this What are reasonable morals of the story? Check all the Nether, he broke even No Yes Your health can change in an instant. Avold engaging in physical activity. Never leave the house. Think long and hard about the best tradeoff of coverage and cost in a health care plan. Don't get sick. 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 Kenji paid for his premiums in full that he had, Instead, worked for a firm that paid 75% of his premiums for the same coverage. Instead of paying premiums of S over the years, Kenji would have paid and saved $ In this case, Kenji's out-of-pocket expenses specific to his snowboarding accident would have been they actually were because