The Baulding family has a basic health insurance plan that pays 80 percent of out-of-hospital expenses after a deductible of $ 250$250 per person. If three family members have doctor and prescription drug expenses of $ 684$684, $ 1 comma 496$1,496, and $ 188$188, respectively, how much will the Baulding family and the insurance company each pay? How could they benefit from a flexible spending account established through Mr. Baulding's employer? What are the advantages and disadvantages of establishing such an account?
The Baulding family has a basic health insurance plan that pays 80 percent of out-of-hospital expenses after a deductible of $ 250$250 per person. If three family members have doctor and prescription drug expenses of $ 684$684, $ 1 comma 496$1,496, and $ 188$188, respectively, how much will the Baulding family and the insurance company each pay? How could they benefit from a flexible spending account established through Mr. Baulding's employer? What are the advantages and disadvantages of establishing such an account?
Chapter4: Income Exclusions
Section: Chapter Questions
Problem 41P
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Question
The Baulding family has a basic health insurance plan that pays 80 percent of out-of-hospital expenses after a deductible of
$ 250$250
per person. If three family members have doctor and prescription drug expenses of
$ 684$684,
$ 1 comma 496$1,496,
and
$ 188$188,
respectively, how much will the Baulding family and the insurance company each pay? How could they benefit from a flexible spending account established through Mr. Baulding's employer? What are the advantages and disadvantages of establishing such an account?Question content area bottom
Part 1
The Baulding family will pay
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