Question

Danielle DiMartino is a 32-year-old single mother with one child. Her 8-year-old daughter has a history of ear infec- tions that require doctor’s office visits four or five times per year. Danielle’s 70-year-old mother lives with the family for financial reasons; she has hereditary high blood pressure and high cholesterol as well as diabetes. Danielle’s mother is enrolled in Medicare Parts A and B. Danielle’s employer pays all or a portion of the cost for a health care plan to cover the company’s workers, their spouses, and their dependents. Danielle has four options: (1) the basic HMO managed by a local university medical school/hospital with no additional cost for Danielle, but with an additional cost of $290 per month to cover her children, (2) a health insurance plan with a PPO at that same medical center for a total cost of $380 per month, (3) a traditional health insurance plan that provides access to virtually all health care providers in her community for $490 per month, and (4) a health plan with a $5,000 deductible at no additional cost. Danielle’s employer offers no disability income or long-term care group plan. She does receive ten sick days per year, which can accumulate if not taken. Danielle has accumulated 30 days.

What do you recommend to Danielle DiMartino on the subject of managing health expenses regarding:

1. Choosing among the four alternatives available to her?

2. Danielle’s concerns about providing for her mother’s health care needs?

3. Danielle’s need for disability income insurance?

4. How Danielle can cover her long-term care risk?

Answer 1

1. Answer

• Danielle can look at option for option 4, were in she can opt for she gets compherensive health plan with an annual payment of $5000 with out any other deduction. Considering that her daughter requires frequent check up for ear infec, she could look at selecting this option.

2) Since Danielle mother is enrolled under Medicare Part A & Part B, she will be able to manage her medical expenses based on that. Also, since Danielle company reimburses alomost all or portion of the medical of cost, she should be able to manage her expenses based on this.

3) Danielle is a single mother with 2 dependents (mother and child). She is the bread winner of that family. The family runs based on the Pay check which she earns. Hence its almost very crucial and important for her to take a disablity plan. She needs to get individual disability insurance policy to fill in any gaps the family has to face in case she is not able to continiue her work.

4)

What Is Long-Term Care?

Long-term care involves a variety of services designed to meet a person's health or personal care needs during a short or long period of time. These services help people live as independently and safely as possible when they can no longer perform everyday activities on their own.