Jim and Stephanie just got married and are thinking about changing their health care insurance plans to be more affordable. Currently, both Jim and Stephanie are insured through their own employers. Jim’s employer pays 42% of his $378 monthly premium. His insurance plan will also pay for 23% of the $345 premium for additional beneficiaries. Stephanie’s employer pays 35% of her $298 monthly premium but offers to pay an extra 10% of her premium for each beneficiary Stephanie adds to her plan. Her employer would then pay 30% of the $349 premium for each additional beneficiary. Insurance Jim's Employer Beneficiary Monthly Premium Employer Contribution Jim $378 42% Additional (each) $345 23% Stephanie's Employer Beneficiary Monthly Premium Employer Contribution Stephanie $298 35% (+10% for each additional beneficiary) Additional (each) $349 30% Which would be the most economical way for the couple to purchase health insurance? a. They should both add each other to their plans. b. Stephanie should add Jim to her health care plan. c. Jim should add Stephanie to his health care plan. d. They should each purchase a plan from their own employer. Please select the best answer from the choices provided A B C D

Option B is correct.

Stephanie should add Jim to her health care plan.

Step-by-step explanation:

Let's take the options one by one.

Option 1

If Jim's employers insure him and his wife.

Jim’s employer pays 42% of his $378 monthly premium. His insurance plan will also pay for 23% of the $345 premium for additional beneficiaries.

It means Jim will pay (0.58 of $378) for himself plus (0.73 of $345) for his wife.

Amount Jim pays = (0.58 × 378) + (0.73 × 345) = $471.09

Option 2

If Stephanie's employers insure both of them.

Stephanie’s employer pays 35% of her $298 monthly premium but offers to pay an extra 10% of her premium for each beneficiary Stephanie adds to her plan. Her employer would then pay 30% of the $349 premium for each additional beneficiary.

It means Stephanie would pay (0.65 of $298) she'll pay for herself plus (0.70 of $349) she'll pay for her husband minus (10% of $298) that her company wants to pay out of the insurance fee of any of her additional beneficiary.

Amount Stephanie will pay = (0.65 × 298) + (0.70 × 349) - (0.10 × 298) = $408.2

Option 3

If each of them does an insurance plan with their respective employers

Jim’s employer pays 42% of his $378 monthly premium.

Stephanie’s employer pays 35% of her $298 monthly premium

Jim would pay (0.58 × $378) for himself = $219.24

Stephanie would pay (0.65 × $298) for herself = $193.7

Total they would pay in this option = $219.24 + $193.7 = $412.94

Of all the three options, the option that minimizes their expenses is when Stephanie insures herself and Jim with her employers for a total cost of $408.2 compared to a total cost of $471.09 if Jim insures the two of them with his employers or $412.94 if they respectively insure each other with their respective employers.

Hope this Helps!!!

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2: 10

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