2. Benefit of health insurance - A cautionary tale In 2016, Raphael becarne responsible for providing his own health insurance. He obtalned sultable coverage ond paid annusl premiurns as shown in the following table. Compute Raphaeils total premiums: Except for an occasional minor iliness requiring a doctor's attention, a drug prescription, and periodic, routine tests, Raphael enjoyed good health during those years. Because he had no reason to think that would change, by the end of 2018 , Raphael 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. Raphael declded to pay premiums for another year but planned to take another look st his health care plan at the end of 2019. In December 2019, Raphael accepted an invitation from friends to go snowboarding. Raphael 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. Raphael was enjoying the day when, from out of nowhere (actually, the woods), came an out of control skier who ran into Raphael, Raphael was injured and taken to the nearest hospital by ambulance. Raphael's infuries included a broken wrist and elbow as well as cuts and bruises. Of biggest concern was the uncertainty of his head injury. Raphael 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 Raphael was in good health, his recovery was complete. Raphoel returned to full function in about six months. Soon after Raphael retumed home, however, the medical bilis for the ambulance, emergency room, intensive care, medications, doctors, tests, and other services arrived. Raphael 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, Raphael's insurance paid 80% of the total medical expenses, thus making him responsible for \% of the expenses, of - Raphael's insurance paid His out-of-pocket expenses for the acodent of plus the 2019 insurance premiums of totaled If Raphael had canceled his heaith insurance at the end of 2018, his out-of-pocket expenses for the accident would have been in this case, did Raphael benent from having health insurance? What are reasonable morals of the story? Check all that apply. Don't get sick. Never leave the house. Your health can change in an instant. Avold engoging in physical activity. 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 one of the company's sponsored plans. Assume that during the same time period that Raphael pald for his premlums in fult that he had, instead, worked for a firm that pald 25% of his premlums for the same coverage, Instead of paying premiums of over the years, Raphael would have paid and saved In this case, Raphael's out-of-pocket expenses specific to his snowboarding accident would have been they actually were because