Suppose your marginal tax rate is 35% and you dont itemize deductions. You can purchase health insurance in a group plan through your employer for $2500 per year. Assuming that you could buy individual coverage in the health insurance market for the same price, how much will you save in taxes by getting your insurance through your employer? (Round answer to nearest $100.)

$1300

$2500

$1625

$875

Your health insurance requires payment of an annual deductible of $550 per person or $1100 per family. After meeting the deductible, you must pay 20 percent of covered charges until you reach $5500 out of pocket, after which the insurer will pay 100 percent of the costs. Assume that your family has had no other claims during the year and that your child requires emergency surgery. If the total covered charges for the surgery are $15900, all incurred in the same plan year, how much will you end up paying out of pocket?

$5500

$3620

$3070

$3180