## Health states in the coming year:

Health states in the coming year:. Health states in the coming year:. Please use the information in Table 1 to answer questions 1-4 on the following page. Tables are provided for each plan for your convenience. Although you do not have to use the tables if you prefer a different methodology, you do need to show your work.

 Table 1 Plan 1 Plan 2 Plan 3 Premiums \$80/month \$100/month \$150/month Co-Pays \$30 \$15 \$10 Deductible \$1,000 \$500 \$200 Coinsurance 80/20 80/20 80/20 Out-of-Pocket Max \$3,000 \$1,000 \$300

 Plan 1 Charges Co-pay Remaining Balance Insurance Payment Patient Payment Total OOP for Visit Total OOP Towards Deductible Total OOP YTD Total OOP Twrds Deductible YTD Total Insurance Payment YTD Visit 1 500 Visit 2 500 Visit 3 500 Plan 2 Charges Co-pay Remaining Balance Insurance Payment Patient Payment Total OOP for Visit Total OOP Towards Deductible Total OOP YTD Total OOP Twrds Deductible YTD Total Insurance Payment YTD Visit 1 500 Visit 2 500 Visit 3 500 Plan 3 Charges Co-pay Remaining Balance Insurance Payment Patient Payment Total OOP for Visit Total OOP Towards Deductible Total OOP YTD Total OOP Twrds Deductible YTD Total Insurance Payment YTD Visit 1 500 Visit 2 500 Visit 3 500

Questions

1. What is your total out-of-pocket for each of the three plans?
2. If you select Plan 2, what is your total out-of-pocket for the second visit?
3. If you select Plan 3, what is your total out of pocket for the second visit?
4. Given the above scenario, which of the three plans should you choose to enroll in?
5. Suppose you currently make \$80k/year and you are faced with two possible health states in the coming year: sick or healthy. There is an 87% chance you will be healthy and a 13% chance of being sick. If you are sick, the cost of treatment is \$80k. Assume also that you obtain 100u when making \$80k under certainty and 87u when making \$65k under certainty. Assume there are 4,000 people in the risk pool.
1. Graph the utility-of-income under certainty and the expected utility-of-income under uncertainty.
3. What is the price of uncertainty?
4. What is the expected payout?
5. What is the minimum premium that must be charged?
6. What is the maximum premium that can be charged?
6. Suppose you currently make \$50k/year and you are faced with two possible health states in the coming year: sick or healthy. There is a 94% chance you will be healthy and an 6% chance of being sick. If you are sick, the cost of treatment is \$50k. Assume also that you obtain 100u when making \$50k under certainty and 94u when making \$43k under certainty. Assume there are 2,500 people in the risk pool.
1. Graph the utility-of-income under certainty and the expected utility-of-income under uncertainty.
3. What is the price of uncertainty?
4. What is the expected payout?
5. What is the minimum premium that must be charged?
6. What is the maximum premium that can be charged?
7. Suppose you currently make \$200k/year and you are faced with two possible health states in the coming year: sick or healthy. There is a 99% chance you will be healthy and a 1% chance of being sick. If you are sick, the cost of treatment is \$200k. Assume also that you obtain 100u when making \$200k under certainty and 99u when making \$190k under certainty. Assume there are 8,500 people in the risk pool.
1. Graph the utility-of-income under certainty and the expected utility-of-income under uncertainty.
3. What is the price of uncertainty?
4. What is the expected payout?
5. What is the minimum premium that must be charged?
6. What is the maximum premium that can be charged?

p(2)

• ### Plagiarism free work.

Health states in the coming year:

Health states in the coming year:

### What We Offer:

• Affordable Rates – (15 – 30% Discount on all orders above \$50)
• 100% Free from Plagiarism
• Masters & Ph.D. Level Writers
• Money Back Guarantee
• 100% Privacy and Confidentiality
• Unlimited Revisions at no Extra Charges
• Guaranteed High-Quality Content