Brett is trying to decide between two insurance plans. The first plan has a $0 deductible, a 50% copay, and an annual out-of-pocket maximum of $1,500. The second plan has a $600 deductible, a 10% copay, and an annual out-of- pocket maximum of $1,500. Brett's only medical expenses are his monthly visits to his primary care physician for which the physician charges $300 per visit. a. If Brett chooses the first plan, how much will he pay out-of-pocket in 1 year? b. If Brett chooses the second plan, how much will he pay out-of-pocket in 1 year?

Brett is trying to decide between two insurance plans. The first plan has a $0 deductible, a 50% copay, and an annual out-of-pocket maximum of $1,500. The second plan has a $600 deductible, a 10% copay, and an annual out-of- pocket maximum of $1,500. Brett's only medical expenses are his monthly visits to his primary care physician for which the physician charges $300 per visit. a. If Brett chooses the first plan, how much will he pay out-of-pocket in 1 year? b. If Brett chooses the second plan, how much will he pay out-of-pocket in 1 year?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter7: Uncertainty

Section: Chapter Questions

Problem 7.4P

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