Chapter 9, Problem 5PA

Summary Introduction

To determine:

The amount that would be paid by the B family and insurance company each, the way they can be benefited from a flexible spending account established through Mr. B’s employer and the advantages or disadvantages of establishing such an account.

Introduction:

Health insurance refers to the arrangement where a company or an organization provides a guarantee to pay for some specified loss related with health in terms of paying for hospital and medical expenses in exchange for some annual installments called premiums.