The Tucker family has health insurance coverage that pays 80 percent of out-of-hospital expenses after a deductible of $500 per person. If one family member has doctor and prescription medication expenses of $1,100, what amount would the insurance company pay?

Becky's comprehensive major medical health insurance plan at work has a deductible of $750. The policy pays 85 percent of any amount above the deductible. While on a hiking trip, Becky contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and a six-day hospital stay, totaled $8,893. A friend told her that she would have paid less if she had a policy with a stop-loss feature that capped her out-of-pocket expenses at $3,000.

a.Calculate the total amount Becky would pay under the current policy.(Round your answers to 2 decimal places.)

b.Would a $3,000 stop-loss provision on her current policy have reduced Becky's cost for this illness?

Ronald Roth started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contains information on the company's health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross/Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program fits his needs. The following is an overview of that information.

1. a) The monthly premium cost to Ronald for the Blue Cross/Blue Shield plan will be $42.32. For all doctor office visits, prescriptions, and major medical charges, Ronald will be responsible for 20 percent and the insurance company will cover 80 percent of covered charges. The annual deductible is $500.
3. b) The HMO is provided to employees free of charge. The copayment for doctors' office visits and major medical charges is $10. Prescription copayments are $5. The HMO pays 100 percent after Ronald's copayment. There is no annual deductible.
5. c) The POS requires that the employee pay $24.44 per month to supplement the cost of the program with the company's payment. If Ron uses health care providers within the plan, he pays the copayments as described above for the HMO with no annual deductible. He can also choose to use a health care provider out of the network and pay 20 percent of all charges after he pays a $500 deductible. The POS will pay for 80 percent of those covered visits.

Ronald decided to review his medical bills from the previous year to see what costs he had incurred and to help him evaluate his choices. He visited his general physician four times during the year at a cost of $125 for each visit. He also spent $65 and $89 on two prescriptions during the year. Assume Ron visited a physician outside of the network plan but had his prescriptions filled at a network-approved pharmacy.

If Ronald selects the POS plan, what would his annual medical costs be?(Round your answer to 2 decimal places.)

***In 2007, Joelle spent $5,000 on her health care. If this amount increased by 6 percent per year, what would be the amount Joelle spent in 2017 for the same health care?Hint:UseExhibit 1-A.(Round FV factor to 3 decimal places and final answer to the nearest whole dollar.)

***In 2012, per capita spending on health care in the United States was about $9,000. If this amount increased by 7 percent a year, what would be the amount of per capita spending for health care in 8 years?Hint:UseExhibit 1-A.(Round FV factor to 3 decimal places and final answer to the nearest whole dollar.)

You are the wage earner in a "typical family," with $40,000 gross annual income. Use the easy method to determine how much insurance you should carry.

You and your spouse are in good health and have reasonably secure careers. Each of you makes about $40,000 annually. You own a home with a mortgage of $80,000, and you owe $15,000 on car loans, $5,000 in personal debts, and $4,000 on credit card loans. You have no other debts. You have no plans to increase the size of your family in the near future. Assume funeral expenses of $10,000. Estimate your total insurance needs using the DINK method.

Shaan and Anita are married and have two children, ages 4 and 7. Anita is a "nonworking" spouse who devotes all of her time to household activities. Estimate how much life insurance Shaan and Anita should carry.

UseExhibit 10-1to find the average number of additional years a male and female, age 25, are expected to live, based on the statistics gathered by the U.S. government as of 2012.(Round your answers to 1 decimal place.)

Mark and Parveen are the parents of three young children. Mark is a store manager in a local supermarket. His gross salary is $75,000 per year. Parveen is a full-time stay-at-home mom. Use the easy method to estimate the family's life insurance needs.

You are a dual-income, no-kids family. You and your spouse have the following debts (total): mortgage, $200,000; auto loan, $10,000; credit card balance, $4,000; other debts, $10,000. Further, you estimate that your funeral will cost $8,000. Your spouse expects to continue to work after your death. Using the DINK method, what should be your need for life insurance?

Using the "nonworking" spouse method, what should be the life insurance needs for a family whose youngest child is 10 years old?

Using the "nonworking" spouse method, what should be the life insurance needs for a family whose youngest child is 5 years old?

Your variable annuity charges administrative fees at an annual rate of 0.15 percent of account value. Your average account value during the year is $200,000. What is the administrative fee for the year?

Sophia purchased a variable annuity contract with a purchase payment of $25,000. Surrender charges begin with 7 percent in the first year and decline by 1 percent each year. In addition, Sophia can withdraw 10 percent of her contract value each year without paying surrender charges. In the first year, Sophia needed to withdraw $6,000. Assume that the contract value had not increased or decreased because of investment performance. What was the surrender charge Sophia had to pay?

Shelly's variable annuity has a mortality and expense risk charge at an annual rate of 1.25 percent of account value. Her account value during the year is $50,000. What was Shelly's mortality and expense risk charge for the year?

Thank you!!