Your friend Taliesha Jackson of Edwardsville, Illinois, recently changed to a new job as a CPA in a moderate-size accounting firm. Knowing that you were taking a personal finance course, she asked your advice about selecting the best health insurance plan. Her employer offered five options. In addition, she could open a flexible spending arrangement to pay some of the premiums:

Option A: A traditional health insurance plan with a $500 annual deductible and an 80 percent/20 percent coinsurance clause with a $2,000 out-of-pocket limit. Taliesha must pay $80 per month toward this plan.

Option B: Same as Option A except that a PPO is associated with the plan. If Taliesha agrees to have services provided by the PPO, her annual deductible drops to $200 and the coinsurance clause is waived. As an incentive to get employees to select Option B, Talieshas employer will provide dental expense insurance worth about $40 per month.

Option C: Another PPO health insurance plan with a $200 annual deductible and a 90percent/10 percent coinsurance clause with a $1,000 out-of-pocket limit. Taliesha must pay $170 per month toward the cost of this plan.

Option D: Membership in an HMO. Taliesha will have to contribute $40 extra each month if she chooses this option.

What are two positive point and two negative points of each plan? Which plan should she pick and why?