Benjamin and Julie Cantrell have two children, with ages of $6$ years and $5$ months. Their younger child, Steven, was born with a congenital heart defect that will require several major surgeries in the next few years to correct fully. Benjamin is employed as a salesperson for a major pharmaceutical firm, and Julie does not work outside the home. Benjamin's employer offers employees a choice between two health benefit plans:

An indemnity plan that allows the Cantrell family to choose health services from a wide range of doctors and hospitals. The plan pays $80$ percent of all medical costs, and the Cantrell family is responsible for the other $20$ percent. There's a deductible of $$500$ per person. Benjamin's employer will pay $100$ percent of the cost of this plan for Benjamin, but the Cantrell family will be responsible for paying $$480$ a month to cover Julie and the children under this plan.

A group HMO. If the Cantrell family choose this plan, the company still pays $100$ percent of the plan's cost for Benjamin, but insurance for Julie and the children will cost $$395$ a month. They'll also have to make a $$25$ co$-$payment for any doctor's office visits and prescription drugs. They will be restricted to using the HMO's doctors and hospital for medical services.

Which plan would you recommend the Cantrell family choose? Why?

The choice of health plans will be determined by which plan

for Steven's surgery and recovery.

If the satisfies the requirement above, then that is the better plan for the family.

What other health coverage options should the Cantrell family consider?

Most insurance plans have a stop$-$loss provision at which point percent of costs are covered.

the plan has a stop$-$loss provision. However, the decision will still be based on which plan will provide

for Steven.

Other insurance available to the Cantrells is most likely an

policy. The cost will be $,$ and there will be employer support; therefore, that alternative is $.$