Sulema’s employer provides her with $2,000 in a medical savings account and a catastrophic health insurance...

Sulema’s employer provides her with $2,000 in a medical savings account and a catastrophic health insurance policy with a deductible of $5,000. What happens if she is in a car accident and has medical bills totaling $15,000? Sulema pays $13,000 out of pocket, $2,000 from her medical savings account. The catastrophic coverage kicks in, paying all the expenses. Sulema’s medical savings account pays $2,000 and she pays $3,000 out of pocket before the catastrophic policy kicks in Sulema pays the total $15,000.

Expert Solution

Sulema’s medical savings account pays $2,000 and she pays $3,000 out of pocket before the catastrophic policy kicks in Sulema pays the total $15,000.

jeff jeffy answered 2 years ago

Insurance is designed to protect drivers from a catastrophic loss in form of their savings put...

Insurance is designed to protect drivers from a catastrophic loss in form of their savings put in the car as well as paying for the other party’s car if they are at fault. The occurrence of these events is not planned and therefore it allows the driver to have peace of mind to know if anything was to happen, they are covered. It does not necessarily mean they will drive recklessly. The system of insurance is designed in a way...

Jill just opened a savings account with Santander Bank anddeposited $2,000 into it. The account...

Jill just opened a savings account with Santander Bank and deposited $2,000 into it. The account pays an annual nominal interest of 1%, but interest is compounded every month. If Jill does not make any future deposits or withdrawals, what will her account balance be after 5 years (ignore all service charges and taxes)?

At the beginning of the year, you put $2,000 in a new savings account that has...

At the beginning of the year, you put $2,000 in a new savings account that has a 3% annual interest rate, but the account earns interest at the end of every six months. At the end of the first year, you withdraw $1,000 from the account. 1. How much interest have you earned after six months? Show your work. 2. How much interest have you earned after one year? Show your work. 3. What is the total amount in your...

When Ruth applied for health insurance, she listed a colonoscopy examination as part of her medical...

When Ruth applied for health insurance, she listed a colonoscopy examination as part of her medical history. The insurance company asked for more information. Ruth requested, in writing, that the clinic where she had been examined send only the colonoscopy records to her insurance company. In addition to the requested information on her colonoscopy, the clinic sent all of Ruth's medical records for the past five years, which included the diagnoses of fibrocystic breast disease and obesity. As a result,...

Catastrophic medical expenses are large, infrequent and unpredictable. Risk aversion explains why people buy insurance which...

Catastrophic medical expenses are large, infrequent and unpredictable. Risk aversion explains why people buy insurance which covers such catastrophic events.( true or false) The primary funding source for the expenses of current Medicare beneficiaries is the fund current beneficiaries contributed to throughout their lifetime. True False

Role of Government in Providing Health Insurance for Other Sections The government provides health insurance to...

Role of Government in Providing Health Insurance for Other Sections The government provides health insurance to low-income individuals, the elderly, and the disabled. These individuals cannot afford private health insurance and would be uninsured if government insurance did not exist. Medicaid and Medicare are entitlement programs, while SCHIP is a block grant program. On the basis of your knowledge on Medicaid, Medicare and SCHIP, write a 3- to 4-page essay in a Microsoft Word document on these government insurance programs....

True/false/uncertain, Support your answer ⦁ A health insurance policy for catastrophic illness only is the worst...

True/false/uncertain, Support your answer ⦁ A health insurance policy for catastrophic illness only is the worst type of health insurance plan from an economist’s perspective because people should self-insure for this risk

Insurance that covers medical costs beyond those covered by basic health insurance is A) major medical...

Insurance that covers medical costs beyond those covered by basic health insurance is A) major medical insurance. B) premium insurance. C) catastrophic insurance. D) none of the above.

Are employer contributions into employees’ health savings accounts taxed as earnings of the employees? Under what...

Are employer contributions into employees’ health savings accounts taxed as earnings of the employees? Under what conditions may employees be exempt from the withholding of federal income taxes during 2017? How do such employees indicate their no-tax-liability status?

10. Louise McIntyre’s monthly gross income is $2,000. Her employer withholds $400 in federal, state, and...

10. Louise McIntyre’s monthly gross income is $2,000. Her employer withholds $400 in federal, state, and local income taxes and $160 in Social Security taxes per month. Louise contributes $80 each month for her IRA. Her monthly credit payments for VISA and MasterCard are $35 and $30, respectively. Her monthly payment on an automobile loan is $285. a. What is Louise's debt payments-to-income ratio? (Enter your answer as a percent rounded to 2 decimal places.) Debt payments-to-income ratio...

Question