For several years, Annie Brouck’s employer has offered a
traditional indemnity plan for health care coverage for herself,
her husband Jim, and their children, Tess and Tasha. Annie and Jim
are in their early 30s; their children are 10-yearold twins.
Recently, the monthly premium for their insurance coverage has
increased dramatically. Annie’s employer has decided to offer
high-deductible health plan where the family will have an initial
deductible of $5000.The cost of this high-deductible plan has a
monthly premium that is almost 50% lower than the indemnity plan.
Describe the steps Annie might follow in deciding whether to choose
this plan or to remain with the more expensive indemnity plan.

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