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3. As of 2008, per capita spending on health care in the United States
was about $8,000. If this amount increased by 5 percent a year, what
would be the amount of per capita spending for health care in 10
years?
4 Sarah’s comprehensive major medical health insurance plan at work
has a deductible of $750. The policy pays 85 percent of any amount
above the deductible. While on a hiking trip, she contracted a rare
bacterial disease. Her medical costs for treatment, including
medicines, tests, and a six-day hospital stay, totaled $8,893.
A friend told her that she would have paid less if she had a policy with
a stop-loss feature that capped her out-of-pocket expenses at $3,000.
Was her friend correct? Show your computations. Then determine
which policy would have cost Sarah less and by how much.
5 The Kelleher family has health insurance coverage that pays 80
percent of out-of-hospital expense