Your health insurance requires payment of an annual deductible of $470 per person or $940 per family. After meeting the deductible, you must pay 20 percent of covered charges until you reach $4700 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 $23900, all incurred in the same plan year, how much will you end up paying out of pocket?

Mariana currently lives in Denver and earns $128000 a year. If the cost of living index in Denver is 103 and the cost of living index in Los Angeles is 136, how much would Mariana need to earn in Los Angeles to maintain the same standard of living? (Round answer to the nearest $100.)

$169000

$97000

$103000

$136000

Over the last 20 years, the rate of increase in health-care costs has been ________ average wage increases and __________ inflation.

equal to; greater than

greater than; equal to

greater than; greater than

less than; greater than

$4700

$4780

$4686

$5156