Question

5. Amy, who is thirty seven years old, is a single mother with two children. Amy is employed as a

laboratory chemist with a national company. She is in good health. Her son Jimmy, age five, is

an active and healthy boy. Lane, her daughter, is an inquisitive and healthy eight-year-old girl.

Amy has come to you for advice about choosing the most appropriate health insurance plan for

her family, as well as preparing for future health insurance issues.

a. If Amy decides to join an HDHP at her work, what must she also contribute to at that time?

b. What factors should Amy consider when deciding to use an HDHP with an HSA?

c. Amy is wondering which of the following events will allow her to change her employersponsored

FSA election: (a) She gets married, (b) she adopts a baby, (c) her son is admitted

to a hospital for surgery, or if she is married and her spouse is fired from his job.

d. If Amy uses an HDHP plan, with an HSA, may she contribute to a health care FSA? May she

contribute to a dependent care FSA?

e. Although Amy is too young to purchase a Medigap or Medicare SELECT plan, she would

like to learn more about these policies for when she retires. If she were to purchase a

Medigap policy, she would want the policy to cover very large, unexpected, and catastrophic

expenses. She is also interested in a lower price plan. What plan would be appropriate for

Amy (select from one of the standard plans)?

f. When would it make sense for Amy to purchase a specified disease policy?

g. What health factors should be monitored as an element of the comprehensive financial

planning process?

h. At which age will Amy trigger a qualifying event under COBRA?

i. Health care coverage is a primary concern for many single mothers. The idea of being

without adequate insurance to cover health expenses for children is a worry for many. What

options are available to Amy should she accept a position at another firm and be without

coverage for a short period of time?

Answer 1

Since the expenses for the health care services are rapidly increasing, it would be better to opt for an health insurance plan which can cover the huge medical bills in the future.Since amy is an single mother, it is highly recommended to opt for a plan which can cover herself and her children.

HDHP or high deductible health plan is a plan where people can opt with lesser premiums and also lower deduction

as amy is a single mother and is being young it would be better to opt for hdhp as young people do not often deal with major illnesses but it would be a better backup in case of unexpected situation.Health savings account(HSA) is a way to save for future medical expenses by getting a tax benefit.enrollment in an HDHP is a must to have HSA.people might want to know the difference between hsa and fsa is hsa can be controlled by an indivudaul whereas an fsa is controlled by the employer.

the events which allow the amy to change her employersponsored are the

a)she gets married b)she adopts a baby.if amy uses an HDHP plan with an HSA, she will contribute to a dependent care fsa.if amy want to choose a health plan which covers major expenses with less premiun i would suggest to choose FSA.

It would be better to opt for a plan around the age of 40.