ols Attempts Keep the Highest/3 2. Benefit of health insurance - A cautionary tale In 2016, Yakov became responsible for providing his own health insurance. He obtained suitable coverage and paid annual premiums as shown in the following table. Compute Yakov's total premiums: Yakov's Premiums 2016 14,479 2017 4,704 2018 4,824 2019 5,049 Total It Could Happen to You, It Could Happen to Me In December 2019, Yakov accepted an invitation from friends to go snowboarding. Yakov did everything right: took a lesson, stayed on trails well within his skill level, and maintained an awareness of people and objects near him. Even though he thought it was a bit dorky to wear wrist guards and a helmet, his friends insisted that he take standard and reasonable safety measures. Yakov was enjoying the day when, from out of nowhere (actually, the woods), came an out of control skler who ran into Yakov. Yakov was injured and taken to the nearest hospital by ambulance. Yakov's injuries included a broken wrist and elbow as well as cuts and bruises. Of biggest concern was the uncertainty of his head injury. Yakov spent a couple of days in intensive care. Fortunately, he didn't have a broken skull, but did have a concussion. Surgery was performed to repair the broken wrist and elbow. Since Yakov was in good health, his recovery was complete. Yakov returned to full function in about six months. Soon after Yakov returned home, however, the medical bills for the ambulance, emergency room, intensive care, medications, doctors, tests, and other services arrived. Yakov also had to have physical therapy for his wrist and elbow. His total medical expenses were $40,000. It was time to find out if all those premiums paid since 2016 would pay off for just one, albeit dramatic, incident. % of the expenses, or Overall, Yakov's insurance paid 75% of the total medical expenses, thus making him responsible for S Yakov's insurance paid $ His out-of-pocket expenses for the accident of 5 plus the 2019 insurance premiums of 5 totaled S In this If Yakov had canceled his health insurance at the end of 2018, his out-of-pocket expenses for the accident would have been case, did Yakov benefit from having health insurance? What are reasonable morals of the story? Check all that apply. Don't get sick. Your health can change in an instant. Avoid engaging in physical activity Never leave the house. It can be financially risky to go without health insurance. 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 Yakov paid for his premiums in full that he had, instead, worked for a firm that paid 25% of his premiums for the same coverage. Instead of paying premiums of $ and saved over the years, Yakov would have paid 5 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 and saved that during the same time period that Yakov paid for his premiums in full that he had, instead, worked for a firm that paid 25% of his premiums for over the years, Yakov would have paid S the same coverage. Instead of paying premiums of S In this case, Yakov's out-of-pocket expenses specific to his snowboarding accident would have been they actually were because
