Careforall, The mayor ofsimcity, claimed that his residents are very elastic and highly sensitive when the price of preventative care changes but not so sensitive when the price of inpatient care changes.To prove her point she referred back to the RAND studies. She claimed that the results of a replicated study in her town are shown below

PlanAverage # of preventative care visitsAverage # of inpatient visits

Free3.20.126

25%2.540.122

50%2.100.118

Careforallclaimed that the best solution for her city is to provide free health care for all. The insurance companies replied that they will not be able to provide such a service. As a health adviser, you need to draft a proposal where you can design a health coverage that will be optimum for the citizen and provide insurance companies with a profitable market. Assume that the average cost of a preventative visit is $75 and the average cost of an inpatient care is $2700 and that the current plan ask patients to contribute 25% of the cost as a copay.