2. Mr. J has three kinds of medical spending: contact lenses, prescription drugs for a condition he has, and accidents and acute illnesses (such as broken bones caused by someone else or pneumonia). He has been paying for all of his medical expenditures out of pocket and he is now considering purchasing health insurance. Different plans he is considering offer coverage for different types of expenditures. Describe in detail the consumption-smoothing benefits and moral hazard costs of coverage for contact lenses, prescription drugs, and accidents and acute illnesses.