It Could Happen to You, It Could Happen to Me In December 2019, Kate accepted an invitation from friends to go snowboarding. Kate did everything right: took a lesson, stayed on trails well within her skill level, and maintained an awareness of people and objects near her. Even though she thought it was a bit dorky to wear wrist guards and a helmet, her friends insisted that she take standard and reasonable safety measures. Kate was enjoying the day when, from out of nowhere (actually, the woods), came an out of control skier who ran into Kate. Kate was injured and taken to the nearest hospital by ambulance. Kate's injuries included a broken wrist and elbow as well as cuts and bruises. Of biggest concern was the uncertainty of her head injury. Kate spent a couple of days in intensive care. Fortunately, she didn't have a broken skull, but did have a concussion. Surgery was performed to repair the broken wrist and elbow. Since Kate was in good health, her recovery was complete. Kate returned to full function in about six months. Soon after Kate returned home, however, the medical bills for the ambulance, emergency room, intensive care, medications, doctors, tests, and other services arrived. Kate also had to have physical therapy for her wrist and elbow. Her total medical expenses were $30,000. It was time to find out if all those premiums paid since 2016 would pay off for just one, albeit dramatic, incident. Overall, Kate's insurance paid 75% of the total medical expenses, thus making her responsible for . Kate's insurance paid plus the 2019 insurance premiums of If Kate had canceled her health insurance at the end of 2018, her out-of-pocket expenses for the accident would have been case, did Kate benefit from having health insurance? % of the expenses, or totaled What are reasonable morals of the story? Check all that apply. In 2016, Kate became responsible for providing her own health insurance. She obtained suitable coverage and paid annual premiums as shown in the following table. Compute Kate's total premiums: Except for an occasional minor illness requiring a doctor's attention, a drug prescription, and periodic, routine tests, Kate enjoyed good health during those years. Because she had no reason to think that would change, by the end of 2018 , Kate was considering dropping her health insurance coverage. After all, she could think of a lot of other uses for the thousands of dollars she spent each year on increasing premiums. Kate decided to pay premiums for another year but planned to take another look at her health care plan at the end of 2019. It Could Happen to You, It Could Happen to Me In December 2019, Kate accepted an invitation from friends to go snowboarding. Kate did everything right: took a lesson, stayed on trails well within her skill level, and maintained an awareness of people and objects near her. Even though she thought it was a bit dorky to wear wrist guards and a helmet, her friends insisted that she take standard and reasonable safety measures. Kate was enjoying the day when, from out of nowhere (actually, the woods), came an out of control skier who ran into Kate. Kate was injured and taken to the nearest hospital by ambulance. Some employers pay part or all of the health insurance premiums for employees who are enrolled in one of the company's sponsored plans. Assume that during the same time period that Kate paid for her premiums in full that she had, instead, worked for a firm that paid 50% of her premiums for the same coverage. Instead of paying premiums of over the years, Kate would have paid and saved In this case, Kate's out-of-pocket expenses specific to her snowboarding accident would have been they actually were because Kate's injuries included a broken wrist and elbow as well as cuts and bruises. Of biggest concern was the uncertainty of her head injury. Kate spent a couple of days in intensive care. Fortunately, she didn't have a broken skull, but did have a concussion. Surgery was performed to repair the broken wrist and elbow. Since Kate was in good health, her recovery was complete. Kate returned to full function in about six months. Soon after Kate returned home, however, the medical bills for the ambulance, emergency room, intensive care, medications, doctors, tests, and other services arrived. Kate also had to have physical therapy for her wrist and elbow. Her total medical expenses were $30,000. It was time to find out if all those premiums paid since 2016 would pay off for just one, albeit dramatic, incident. Overall, Kate's insurance paid 75% of the total medical expenses, thus making her responsible for . Kate's insurance paid plus the 2019 insurance premiums of % of the expenses, or totaled If Kate had canceled her health insurance at the end of 2018, her out-of-pocket expenses for the accident would have been . In this case, did Kate benefit from having health insurance? What are reasonable morals of the story? Check all that apply. Your health can change in an instant. It can be financially risky to go without health insurance. Don't get sick. Never leave the house. Think long and hard about the best tradeoff of coverage and cost in a health care plan