Q$-(1).$ Using context clues, fill in the blanks in the below paragraph using the below list of terms. There are more terms than there are blanks and the same term can be used multiple times.

$1.$ Allowed amount

$2.$ Coinsurance

$3.$ Copayment

$4.$ Contractual adjustment

$5.$ Deductible

$6.$ Premium

In August $2020,$ Josephine needs surgery to alleviate her sciatica. Her plan has some substantial cost$-$sharing and therefore she wants to do her homework and shop around for cost efficient surgeon. She has a $$5,000$ annual $($a$)\_\_\_\_\_\_\_\_\_\_$ for medical expenses, and once she meets that, she has $15\%($b$)\_\_\_\_\_\_\_\_\_\_.$ She was sick in January with flu and saw the doctor a few times and therefore spent about $$400$ towards her annual $($c$)\_\_\_\_\_\_\_\_\_\_.$ She has contacted $2$ hospitals and found out that Hospital A charges $$10,000$ for the procedure and Hospital B charges $$12,000$ for the procedure. She has called her insurance company $($she purchases insurance through her employer$)$ and found out that they have negotiated a $($d$)\_\_\_\_\_\_\_\_\_\_$ so that the total e$)\_\_\_\_\_\_\_\_\_\_$for Hospital A is $$9,000$ and the total $($f$)\_\_\_\_\_\_\_\_\_\_$for Hospital B is $$8,000.$

Q$-(2).$ If Jo wants to minimize costs, which hospital should she choose?

a$.$ Hospital A

b$.$ Hospital B

c$.$ Either $$ costs are the same for the both

Q$-(3).$ What is Jo's total out$-$of$-$pocket expenditure?

a$)$ $$8,000$

b$)$ $$1,200$

c$)$ $$5,110$

d$)$ $$11,400$

Q$-(4).$ Jo is in charge of benefits at her company and knows that next year, her plan will change so that she will have a lower deductible $($$$4,000)$ and the coinsurance will stay the same. If Jo waits until Jan $1,2021,$ what will her total out$-$of$-$pocket expenditure be for the surgery? Assume the negotiated discounts between payers and Hospital A and B don't change.

Q$-(5).$ Jo tells her doctor of her plans to wait and the doctor prescribes her medication to manage the pain for the next $4$ months. The medications costs $$150$ for a $30-$day supply. It is not on the formulary and therefore she has $$50$ copay each month. Incorporating the out$-$of$-$pocket cost of the medication, when should she have the surgery?