he Baulding family has a basic health insurance plan that pays 80 percent of out-of-hospital expenses after a deductible of $250 per person. If three family members have doctor and prescription rug expenses of $425, $1,444, and $195, respectively, how much will the Baulding family and the insurance company each pay? How could they benefit from a flexible spending account stablished through Mr. Baulding's employer? What are the advantages and disadvantages of establishing such an account?
he Baulding family has a basic health insurance plan that pays 80 percent of out-of-hospital expenses after a deductible of $250 per person. If three family members have doctor and prescription rug expenses of $425, $1,444, and $195, respectively, how much will the Baulding family and the insurance company each pay? How could they benefit from a flexible spending account stablished through Mr. Baulding's employer? What are the advantages and disadvantages of establishing such an account?
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 20CE
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Transcribed Image Text:The Baulding family has a basic health insurance plan that pays 80 percent of out-of-hospital expenses after a deductible of $250 per person. If three family members have doctor and prescription
drug expenses of $425, $1,444, and $195, respectively, how much will the Baulding family and the insurance company each pay? How could they benefit from a flexible spending account
established through Mr. Baulding's employer? What are the advantages and disadvantages of establishing such an account?
The Baulding family will pay $
(Round to the nearest dollar)
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