Question
Ludwig Lindamood has just accepted a position at a midsize firm that provides three health insurance plan choices for employees. Basic information about each plan
Ludwig Lindamood has just accepted a position at a midsize firm that provides three health
insurance plan choices for employees. Basic information about each plan is provided below
(note: Plan C is a high-deductible health plan with a savings option). Ludwig must make a plan
choice immediately. He can afford the annual premium for any of the plans and/or the HSA
contribution. Although no one can predict a future health emergency, Ludwig estimates that he
will likely incur $500 in medical expenses during the next year. Given this forecast, what policy
should he purchase to minimize his net health insurance cost for the year?
Could you please show formulas as well!
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