Answer:
Option B is correct.
Stephanie should add Jim to her health care plan.
Step-by-step explanation:
Let's take the options one by one.
Option 1
If Jim's employers insure him and his wife.
Jim’s employer pays 42% of his $378 monthly premium. His insurance plan will also pay for 23% of the $345 premium for additional beneficiaries.
It means Jim will pay (0.58 of $378) for himself plus (0.73 of $345) for his wife.
Amount Jim pays = (0.58 × 378) + (0.73 × 345) = $471.09
Option 2
If Stephanie's employers insure both of them.
Stephanie’s employer pays 35% of her $298 monthly premium but offers to pay an extra 10% of her premium for each beneficiary Stephanie adds to her plan. Her employer would then pay 30% of the $349 premium for each additional beneficiary.
It means Stephanie would pay (0.65 of $298) she'll pay for herself plus (0.70 of $349) she'll pay for her husband minus (10% of $298) that her company wants to pay out of the insurance fee of any of her additional beneficiary.
Amount Stephanie will pay = (0.65 × 298) + (0.70 × 349) - (0.10 × 298) = $408.2
Option 3
If each of them does an insurance plan with their respective employers
Jim’s employer pays 42% of his $378 monthly premium.
Stephanie’s employer pays 35% of her $298 monthly premium
Jim would pay (0.58 × $378) for himself = $219.24
Stephanie would pay (0.65 × $298) for herself = $193.7
Total they would pay in this option = $219.24 + $193.7 = $412.94
Of all the three options, the option that minimizes their expenses is when Stephanie insures herself and Jim with her employers for a total cost of $408.2 compared to a total cost of $471.09 if Jim insures the two of them with his employers or $412.94 if they respectively insure each other with their respective employers.
Hope this Helps!!!
