Discussion 5.1 Choosing a Health Insurance Plan
Choose the best Plan
This discussion question is on Page 254 in your text. Please go to LO2,3,4 #3. Choose the best plan that suits this situation. Give good support for your answer.
* Discussion 5.2 Co-Insurance Clauses
This discussion question is on Page 279 in your text. Please go to LO1, #1. It asks your advice on whether an 80% or 90% Coinsurance Clause is best for this particular policy.
* Assignment 5.1
On page 254 of your text, Do assignment L02, 3,4, #4. It asks you to calculate total expenses and out of pocket indemnity plan costs.
* Assignment 5.2
On page 279 of your text, Do assignment L05, #6. It asks how much the insurance coverage would be in the given scenarios.
Author’s Name
Professor’s Name
Course Number
Date of Submission
Insurance
Discussion 5.1 Choosing a Health Insurance Plan
The best option for Sander’s family will be health insurance because it shows that the boss is concerned for the wellbeing of his family members as well. It’s best to consider the current and future situation of the family to choose the best beneficial insurance program. Just the presence of one member makes them part of the organization. First, Sander can go for an indemnity plan to choose healthcare services that can be provided by different care providers in a wide range of hospitals. Sander’s family will only cover 20% of the bills and the remaining 80% covered by the firm. The plan is much more advantageous for the family given that one of his children has a congenital heart problem. Furthermore, the family can consider other options such as,
- Extra payment whenever they visit a doctor and are given a prescription. This will be better because their child will require several such visits, including major surgeries with the next few years for a full recovery.
- Monthly payment to his family
Assignment 5.1: out of pocket healthcare insurance
| Particulars | Amount ($) |
| Hospitalization | 4500 |
| Surgical fees | 6200 |
| Physician’s fee | 4300 |
| Medication | 520 |
| Physical therapy | 2100 |
| Total cost
Deductible |
17620
(500) |
| Non-covered insurance | 20%*17620 = 3424 |
| Initial payment | 500 |
| Out of pocket cost | 3424+500 = 3924 |
Discussion 5.2 Co-Insurance Clauses
An 80% clause is cheaper than a 90% clause. This is because an 80% clause will still suffice Maya’s needs even if it’s smaller, which translates to lesser chargers (Gitman, Joehnk, & Billingsley 260). Besides, homeowners’ insurance policy is associated with reduced risks compared to life insurance. If it were life insurance, then 90% would have been better because sickness and death are inevitable.
Assignment 5.2 “Personal automobile policy coverage.
- Zachary will have to compensate for losses as follows
| Particulars | Mount ($) |
| Damage to parker car | 3785 |
| Damage to own car | 2350 |
| Total | 6135 |
| Less deductible out of pocket expense | 500 |
| Claim payable by the insurance company | 5635 |
Insurance providers mostly cover a claim after the deductible is already accounted for (Gitman, Joehnk, & Billingsley 263). After accounting for damage to his own car and packed car, Zachary will have $5635 as the claim payable.
- If the injured party wins a lawsuit of $30000, Zachary will have to pay them the full ($30000) from his comprehensive automobile insurance policy of which $2500 is claimed from the insurance company and $5000 will be out of pocket payment.
- Zachary will have to compensate the full amount of $450 from his comprehensive automobile insurance policy and will not incur any out-of-pocket charges because his comprehensive automobile insurance policy covers all the losses associated with his automobile.
Works Cited
Gitman, L. J., Joehnk, M. D., & Billingsley, R. (2015). PFIN 4. Cengage Learning.