Question

In order to make premiums more affordable for their customers, Leroux Health Insurance is considering some changes to one of the plans they offer. Both the current options and proposed changes are outlined in the charts below. Leroux Health Insurance Plan A: Current Options Monthly Premium: 248.00 Annual Deductible:5,500.00 Co-pays: Brand-name Prescriptions: 35.00 Generic Prescriptions:15.00 Visits: Primary Care Physician: 40.00 Specialist:60.00 Urgent Care: 125.00 Emergency Room:325.00 Proposed Changes Monthly Premium: 203.00 Annual Deductible:8,500.00 Co-pays: Brand-name Prescriptions: 30.00 Generic Prescriptions:10.00 Visits: Primary Care Physician: 30.00 Specialist:45.00 Urgent Care: 90.00 Emergency Room:250.00 If Kevin is currently insured under Leroux for his medical insurance under Plan A, how will the proposed changes affect his health care costs?

1) His health care costs for regularly scheduled health care will go down, but Kevin may end up paying more if he finds himself seriously ill.
2) His health care costs for regularly scheduled health care will go up, but Kevin will probably pay less than he would have if he finds himself seriously ill.
3) The cost for regularly scheduled health care and the cost for emergency health care will go down, making the changes very good for Kevin.
4) The cost for regularly scheduled health care and the cost for emergency health care will go up, contradicting the intentions of Leroux Insurance.

Answer 1

Kevin will save on monthly health care premiums and co-pays for services with the proposed changes, but the increased annual deductible could result in higher out-of-pocket expenses in case of serious illness or extensive medical care.

Step-by-step explanation:

When considering the impact of the proposed changes to Leroux Health Insurance Plan A on Kevin's health care costs, we should look at the changes in monthly premiums, deductibles, and co-pays. The proposed changes include a reduction in monthly premium from $248.00 to $203.00, which would save Kevin money on a monthly basis. However, there is a significant increase in the annual deductible, from $5,500.00 to $8,500.00. This means that Kevin would have to pay more out-of-pocket before his insurance starts to cover medical costs.

The proposed plan also reduces co-pays for prescriptions and visits, potentially lowering Kevin's out-of-pocket costs for each service used. For example, the costs for brand-name prescriptions, generic prescriptions, visits to the primary care physician, specialists, urgent care, and emergency room all see reductions in co-pays under the proposed changes.

In conclusion, the first option best describes the impact: 1) His health care costs for regularly scheduled health care will go down, but Kevin may end up paying more if he finds himself seriously ill. While Kevin will save on premiums and co-pays, the higher deductible means that in the case of serious illness or injury where he incurs high medical costs, he could end up paying more out-of-pocket before insurance covers the expenses.