Suppose that Helens marginal income tax rate is 28 present. Compare her after-tax income and her group medical costs under three scenarios:

a) She receives $45,000 in salary and pays $2,500 for individual medical coverage

b) She receives 43.000 in salary and group medical coverage on a noncontributory basis with the employers contribution to the cost of coverage equal to 2.500

c) she receives 46.000 in salary and group medical coverage on a contributory basis with the employers contribution equal to $1,250 and her required (tax deductible) contribution equal to $1,250