Question: (10 points) Part I: Sally needs to choose between 2 health insurance plans. Assume Sally will use $4,500 worth of medical services this year.

(10 points) Part I: Sally needs to choose between 2 health insurance

(10 points) Part I: Sally needs to choose between 2 health insurance plans. Assume Sally will use $4,500 worth of medical services this year. Is she better off choosing plan A or plan B? Briefly show your work and explain. (Assume Max Out-of-Pocket Includes deductibles and co-insurance only., Max out-of-pocket and out-of-pocket limits are interchangeable terms) Plan A: 1. Monthly premium: $250 . Co-pay. $0 . Co-insurance (after deductible): 10% v. Deductible: $1,500 v. Max out-of-pocket: $4,000| H Plan B: vi. Monthly premium: $100 vii. Co-pay: $0 vili. Co-insurance (after deductible): 20% ix. Deductible: $2,500 x. Max out-of-pocket $8,000

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