Refer to the Flexible Insurance Coverage case. Design a spreadsheet that will allow an individual employee with estimated annual medical expenses of $400 to compare the total expenses under each plan.
Refer to the Flexible Insurance Coverage case,
A company health plan offers four alternatives for coverage, from a low-cost plan with a high deductible to a high cost plan with a low deductible. The details of coverage are given in the following table. The Human Resources Department would like to develop a means to help any employee, whether single or married, small family or large, low medical expenses or high, to compare these plan alternatives.

The deductible amount is paid by the employee. The first figure applies to an individual; the second applies to two-person or family coverage. In the case of Option 1, for example, this means that the insurance coverage takes effect once an individual has paid for $1,500 worth of expenses. (This limit holds for any individual under two-person or family coverage, as well as for an individual with one-person coverage.) In the case of two person or family coverage, the insurance also takes effect once the household has incurred $2,500 worth of expenses.
The co-insurance is the percentage of expenses that must be paid by the employee when the insurance coverage takes effect. In the case of Option 2, for example, this means that the insurance covers 80 percent of all expenses after the deductible amount has been reached.
The Annual Premium is the cost of the insurance to the employee.

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Plan Options and Costs Annual Premium Deductible $1,500/$2,500 500/1,000 Co-insurance 1-Person 2-Person Family Option 1 Option 2 Option 3 Option 4 $3,651 4,032 4,491 5, 154 $4,929 5,444 6,063 6,959 none $1,825 2,016 2,245 20% 20% 10% 250/500 100/200 2,577