Problem 1. Health insurance contracts with deductibles are inherently "nonlincar". Consider two health plans with the following features: Plan Deductbiles Coinsurance Max OOP A $500 10% $2,000 B $200 15% $2,000 Assume the premiums for the two plans are the same. a. Graph the relationship between your out-of-pocket cost and total medical expen- diture under Plan A. b. Which plan would you choose if your expected total medical bill for the year is $150? Will your answer change if you expected total bill is $250? c. If your expected total medical bill if $2,000, which plan will provide you with better financial protection (i.c. lower out-of-pocket cost)? d. How large will your medical bill have to be in order to hit the maximum out-of- pocket cost under each plan? e. Find the range of total medical expenditure where Plan B is your optimal choice