Chapter 11 EXTRA CREDIT (10 pts total) 1. Michael Howitt of Berkley, Michigan, recently had his gallbladder removed. His total bill for this surgery, which was his only health care expense for the year, came to $13,810. His health insurance plan has a $450 annual deductible and an 80/20 coinsurance provision. The cap on Michael's coinsurance share is $1,950. Round your answers to the nearest dollar A. How much of the bill will Michael pay? (1 pt) B. How much of the bill will be paid by Michael's insurance? (1 pt) 2. In 2012 Yayoi became responsible providing her own health insurance. She obtained suitable coverage and paid annual premiums for each year of coverage as shown in the following table. Compute Yayoi's total premiums: (1 pt) Yayoi's Premiums 2012 $4,445 2013 4,724 2014 4,836 2015 5,079 TOTAL 3. Yayoi enjoyed good health during those years, and decided to pay premiums for another year but planned to take another look at her health care plan at the end of 2015. In December, 2015, Yayoi accepted an invitation from friends to go snowboarding and she took standard and reasonable safety measures. However, Yayoi was injured and taken to the nearest hospital by ambulance. Injuries included a broken wrist and elbow as well as cuts and bruises. Of biggest concern was the uncertainty of her head injury. Yayoi spent a couple days in intensive care. Fortunately, she didn't have a broken skull, but did have a concussion. Surgery repaired the broken wrist and elbow. Since Yayoi was in good health, she completely recovered. Yayoi returned to full function in about six months. Soon after Yayoi returned home, the medical bills for the ambulance, emergency room, intensive care, medications, doctors, tests, and other services arrived. Yayoi also had to have physical therapy for her wrist and elbow. Her total medical expenses were $35,000. It was time to find out if all those premiums paid since 2012 would pay off for this one, albeit dramatic, incident. Overall, Yayoi's insurance paid 80% of the total medical expenses, thus making her responsible for % or $ of the bills, leaving her insurance to pay (3 pts) S 4. Her out-of-pocket expense for the accident plus her premiums for the year totaled $ _. (1 pt) 5. If Yayoi had canceled her health insurance at the end of 2014, her out-of-pocket expense for the accident would have been $ _. (1 pt) 6. Did Yayoi benefit from having insurance? (1 pt) 7. If Yayoi worked for a company that paid 50% of her premiums, her portion of the medical bills would have been: (1 pt) a. More than in Question 3 b. Less than in Question 3 c. The same as in Question 3