Following are the health insurance options:

A PPO with HSA with $2,000 deductible and a $40 copay within the network, a 30/70% coinsurance in network, and a $25 copay for prescriptions. Maximum annual out of pocket expense is $6,000 (Premiums are $550 a month for an individual).

An HMO IPA model with co-pays of $25 per visit and $25 copay for prescriptions. Maximum annual out of pocket expense is $2,000 (Premiums are $550 a month for an individual)

30. You are single, age 25, earning $65,000. If you are diabetic, which plan would you choose? And why?

a.You like to save money and will select the HMO IPA

b.You are worried about the high cost of your illness and would select the HMO IPA to avoid the high deductible

c.Being so young, you will be better off with HSA and have enough after tax money in the account for the future

d.Being so young and in good health, you will be better off with HSA and have enough before tax money in the account for the future

e.None of the above

31. You are single, age 25, earning $65,000. If you are healthy, which plan would you choose? And why?

a.You like to save money and will select the HMO IPA

b.You are worried about the high cost of illnesses and would select the HMO IPA to avoid out of pocket expenses

c.Being so young, you will be better off with HSA and have enough after tax money in the account

d.Being so young and in good health, you will be better off with HSA and have enough before tax money in the account

e.None of the above