A retiree mentioned in the N&O yesterday
opted for health insurance with a monthly premium of $386 and a $4,000
annual deductible instead of one with an $850 premium and an $800
deductible. The article notes, “he weighed the risks and decided the
lower premium was worth the higher out-of-pocket costs.” Math time: How
much does he save each month? How much higher is is deductible? Other
things being equal, how much more does he save or spend with the higher
deductible plan?
Bonus question: The $850 premium
represents an increase of $300 from the previous year. How much would
he have had to pay out-of-pocket in the $386-a-month plan to justify
enrollment in the $550-a-month plan?
