For prescription drug coverage with her family health care plan, Emmeline has four options.
| Plan | Monthly Premium | Prescription Co-pay |
| -------- | --------------- | ------------------- |
| Option A | $50 | $20 |
| Option B | $70 | $15 |
| Option C | $90 | $10 |
| Option D | $110 | $8 |
Based on Emmaline's records, her family fills an average of two prescriptions per month. Which would be her least expensive option?
A. Option A
B. Option B
C. Option C
D. Option D
Answer (2)
Calculate the total cost for Option A: $50 + (2 \times 20) = $90.
Calculate the total cost for Option B: $70 + (2 \times 15) = $100.
Calculate the total cost for Option C: $90 + (2 \times 10) = $110.
Calculate the total cost for Option D: $110 + (2 \times 8) = 126. T h e l e a s t e x p e n s i v eo pt i o ni s \boxed{Option A}$.
Explanation
Understanding the Problem Emmeline has four options for prescription drug coverage, each with a different monthly premium and prescription co-pay. We need to determine which option is the least expensive, given that her family fills an average of two prescriptions per month.
Calculating Total Costs First, we calculate the total monthly cost for each option. This includes the monthly premium plus the cost of two prescriptions.
Option A Cost Option A: Monthly premium is $50 and the co-pay is 20. T h e t o t a l cos t i sc a l c u l a t e d a s : 50 + ( 2 × 20 ) = 50 + 40 = 90 $
Option B Cost Option B: Monthly premium is $70 and the co-pay is 15. T h e t o t a l cos t i sc a l c u l a t e d a s : 70 + ( 2 × 15 ) = 70 + 30 = 100 $
Option C Cost Option C: Monthly premium is $90 and the co-pay is 10. T h e t o t a l cos t i sc a l c u l a t e d a s : 90 + ( 2 × 10 ) = 90 + 20 = 110 $
Option D Cost Option D: Monthly premium is $110 and the co-pay is 8. T h e t o t a l cos t i sc a l c u l a t e d a s : 110 + ( 2 × 8 ) = 110 + 16 = 126 $
Finding the Least Expensive Option Comparing the total costs for each option, we have: Option A: $90 Option B: $100 Option C: $110 Option D: $126 The least expensive option is Option A, with a total monthly cost of $90.
Final Answer Therefore, the least expensive option for Emmeline's family is Option A.
Examples
Understanding different healthcare plans and their costs is crucial in personal finance. For instance, if you're choosing between two car insurance policies, one with a higher monthly premium but lower deductible, and another with a lower premium but higher deductible, you can use a similar calculation to determine which plan is more cost-effective based on your driving habits and risk tolerance. By estimating how often you might need to use the insurance (e.g., number of accidents per year), you can calculate the total expected cost for each plan and make an informed decision.
Emmeline's least expensive prescription drug coverage option is Option A , which costs $90 per month when considering both the premium and co-pays for her family's average of two prescriptions. Option B, C, and D are more expensive at $100, $110, and $126 respectively. Therefore, Option A provides the best value for Emmeline's family needs.
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