Your organization has 100 employees participating in your health insurance plan.

Question

Your organization has 100 employees participating in your health insurance plan. Costs are rising and you are projecting a 20% increase on your portion of the premium, which is on average $200/month. As a result, your HR Director is contemplating switching to a plan with an HSA, where you will not make any premium contributions but instead will cover the $2,500 deductible for each employee. After doing the math, you determine that this proposal O is actually more expensive than the current plan O will save your company $48,000 annualy O will save your company $38,000 annualy O will save your company $58,000 annualy Previous Next Not saved Submit Quiz

Explanation / Answer

Number of employees =100

% increase in premium amount =20%

Let x was the premium before

20% x= 200 . Thus (x) = (200*100)/20 = $ 1,000

So total premium for 100 employees = 1,000* 100 = $ 10,00,00

Alternate plan $ 2,500 per employee

Thus for 100 employee = 100* 2,500 = 250,00,00

Thus Ans: a . The plan is actually more expensive than the current plan.

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