Sally needs to choose between 2 health insurance plans. Assume Sally will use $4,500 worth of medical services this year. Is she better off choosing plan A or plan B? Briefly show your work and explain. Plan A: i. Monthly premium: $250 ii. Co-pay: $0 iii. Co-insurance (after deductible): 10% iv. Deductible: $1,500 v. Max out-of-pocket: $4,000

Plan B: vi. Monthly premium: $100 vii. Co-pay: $0 viii. Co-insurance (after deductible): 20% ix. Deductible: $2,500 x. Max out-of-pocket: $8,000

Answer: Sally is better off with Plan _______ because it will cost a total of $______________, which is lower than the total cost of Plan ____ which would be $__________________.

Show your work here: