Learning Objective: to be able to calculate the out of pocket cost using several basic insurance plans For the purpose of this assignment, we will be using the three plans shown below. Assume that all of the medical expenses occur in the same billing year--so carry over the accounts from each previous year. With each situation, calculate what the individual would owe and find the important amounts to carry over to the next event. We will also assume that a doctors visit only costs the co-pay. The plans shown below are gross simplifications of actual insurance plans so be careful when it comes to calculating your own medical expenses. Plan A: Everything has a $20 co-pay. The plan has a $1,000 deductible but pays 100% of expenses after that. This plan also has a yearly limit on total deductible expenses of $2,500. Plan B: Most things have a $10 co-pay. There is a $200 deductible with 80% coinsurance after that. There is no limit on yearly out-of-pocket expenses. There is a co-pay limit of $100 for the year. Plan C: This is a health savings account. There is a $50 co-pay for everything and the account has $40,000 in it. 4. Ahmed gets appendicitis. The surgery costs $12,000, but while he was in the hospital, he also got pneumonia. He had to remain hospitalized for 14 days at a cost of $200 per day. This also ends up being 3 co-pays. Paid by the plan Paid by individual Left Plan A. Plan B. Plan C. 5. Lee ends up getting a rare but treatable form of leukemia. He is hospitalized for several months and makes a full recovery. He total medical bills end up being $130,000 and one co-pay. Paid by the plan Paid by individual Left Plan A. Plan B. Plan C. 6. Summarize each plan in the table below: Paid by the plan Paid by individual Plan A. Plan B. Plan C. 7. Based on your calculations discuss as a group which plan you would expect to be most and least expensive. Explain your reasoning. 8. How much money would this family have needed to make to sustain them through this past year under each plan? A household this size would normally spend 4-10% of their income on healthcare. Explain your reasoning.