insurance\njims employer\nbeneficiary monthly premium employer contribution\njim $378 42%\nadditional (each)…

insurance\njims employer\nbeneficiary monthly premium employer contribution\njim $378 42%\nadditional (each) $345 23%\nstephanies employer\nbeneficiary monthly premium employer contribution\nstephanie $298 35% (+10% for each additional beneficiary)\nadditional (each) $349 30%\nwhich would be the most economical way for the couple to purchase health insurance?\n a. they should both add each other to their plans.\n b. stephanie should add jim to her health care plan.\n c. jim should add stephanie to his health care plan.\n d. they should each purchase a plan from their own employer.

insurance\njims employer\nbeneficiary monthly premium employer contribution\njim $378 42%\nadditional (each) $345 23%\nstephanies employer\nbeneficiary monthly premium employer contribution\nstephanie $298 35% (+10% for each additional beneficiary)\nadditional (each) $349 30%\nwhich would be the most economical way for the couple to purchase health insurance?\n a. they should both add each other to their plans.\n b. stephanie should add jim to her health care plan.\n c. jim should add stephanie to his health care plan.\n d. they should each purchase a plan from their own employer.

Answer

Explanation:

Step1: Calculate cost if they add each other to their plans

Jim adds Stephanie:

Jim's employer contributes 42% of his $378 premium and 23% of the $345 additional - premium for Stephanie. Jim's out - of - pocket cost: $(1 - 0.42)\times378+(1 - 0.23)\times345=0.58\times378 + 0.77\times345=219.24+265.65 = 484.89$.

Stephanie adds Jim:

Stephanie's employer contributes 35% of her $298 premium and 30% of the $349 additional - premium for Jim. Stephanie's out - of - pocket cost: $(1 - 0.35)\times298+(1 - 0.30)\times349=0.65\times298+0.7\times349 = 193.7+244.3=438$. Total cost if they add each other: $484.89 + 438=922.89$.

Step2: Calculate cost if they each purchase a plan from their own employer

Jim's out - of - pocket cost: $(1 - 0.42)\times378=0.58\times378 = 219.24$. Stephanie's out - of - pocket cost: $(1 - 0.35)\times298=0.65\times298 = 193.7$. Total cost if they each purchase a plan: $219.24+193.7 = 412.94$.

Step3: Compare the costs

$412.94<922.89$.

Answer:

d. They should each purchase a plan from their own employer.