For this assignment, you will prepare a written document response to a case study that analyzes the design of a health insurance plan. Please follow the instructions below and prepare your document. Be sure to save in .doc or .docx format, and to follow APA guidelines.
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Instructions:
In Module 3, learned about the design of various health insurance plans.
Review the case study of health insurance plans.
Module 3 Case Study Health Insurance Plan.pdf
Module 3 Case Study Health Insurance Plan.pdf – Alternative Formats
Provide an analysis of the plan design.
Answer each of the questions found at the end of the Case Study.
Case Study – Module 3 – Health Insurance Plan Design
Lucy is starting out on her own in a rural area in Illinois and wants to be responsible. She has a
steady job with benefits, a car, and an apartment in an old farmhouse. She understands that
insurance may help minimize some financial risks, but she can’t afford to purchase every policy
she wants within her budget. She has determined that she can spend up to $2,150 per year on
premiums. Lucy needs some assistance on what plans may be appropriate for her.
Medical Insurance
Dental insurance
Vision insurance
Through her employer,
Lucy could pay a
premium of $103 per
month.
Through her employer,
Lucy could pay a
premium of $27 per
month.
Through her employer,
Lucy could pay a
premium of $2 per
month.
$30 copay for doctor
visits
$10 copay for
prescriptions
$0 copay for annual
physical
$50 copay for
emergency room visits
Lucy pays 20% of the
cost of medical
procedures.
Health Savings
Account (HAS)
Lucy’s employer
also offers a HAS.
She could
contribute up to
$0 copay for
$30 copay for eye
$3650 to an HSA
preventative services
doctor visits
plan and her
Lucy would pay 25% of $10 copay for
employer would
the filling costs.
prescriptions
contribute $600.
$0 copay for an annual Lucy’s thinking
Lucy brushes and
eye exam
this is money in
flosses every day so
the bank and a
does she really need
great tax break!
this insurance?
There is a $5,000
deductible for
medical expenses
along with this
plan.
$0 copay for
preventative
services.
HSA funds can be
used to cover
medical, dental,
and vision
expenses.
Questions:
1. Knowing what Lucy can afford, what recommendation would you provide to her?
2. Answer the following questions with your recommendation:
a. Lucy got sick and visited the doctor. Without insurance, the appointment cost is $120,
and the antibiotics cost $110. Did Lucy have coverage? How much did she have to
pay?
b. Lucy fell on the ice while hiking and had to go to the Emergency Room for stitches.
Without insurance, the procedure cost is $250. Did Lucy have coverage? How much
did she have to pay?
c. Lucy got dirt in her eye while picking fruit at a local farm. She went to the eye doctor
when her eye became swollen. Without insurance, the appointment cost $150 and the
eye drops prescribed cost $90. Did Lucy have coverage? How much did she have to
pay?
d. While eating a piece of hard candy, Lucy broke a tooth. Without insurance, the
appointment cost $100 and the filling cost $300. Did Lucy have coverage? How much
did she have to pay?
3. How much did Lucy have to spend this year? Would you change your
recommendation to Lucy based on her history of this year? Why or why not?
Source: https://files.consumerfinance.gov/
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