Amy, who is thirty seven years old, is a single mother with two children. Amy is employed as a laboratory chemist with a national company. She is in good health. Her son Jimmy, age five, is an active and healthy boy. Lane, her daughter, is an inquisitive and healthy eight-year-old girl. Amy has come to you for advice about choosing the most appropriate health insurance plan for her family, as well as preparing for future health insurance issues.

a. If Amy decides to join an HDHP at her work, what must she also contribute to at that time?

b. What factors should Amy consider when deciding to use an HDHP with an HSA?

c. Amy is wondering which of the following events will allow her to change her employersponsored FSA election: (a) She gets married, (b) she adopts a baby, (c) her son is admitted to a hospital for surgery, or if she is married and her spouse is fired from his job.

d. If Amy uses an HDHP plan, with an HSA, may she contribute to a health care FSA? May she contribute to a dependent care FSA?

e. Although Amy is too young to purchase a Medigap or Medicare SELECT plan, she would like to learn more about these policies for when she retires. If she were to purchase a Medigap policy, she would want the policy to cover very large, unexpected, and catastrophic expenses. She is also interested in a lower price plan. What plan would be appropriate for Amy (select from one of the standard plans)?

f. When would it make sense for Amy to purchase a specified disease policy?

g. What health factors should be monitored as an element of the comprehensive financial planning process?

h. At which age will Amy trigger a qualifying event under COBRA?

i. Health care coverage is a primary concern for many single mothers. The idea of being without adequate insurance to cover health expenses for children is a worry for many. What options are available to Amy should she accept a position at another firm and be without coverage for a short period of time?