Reference no: EM133464620

Danielle DiMartino is a 36-year-old single mother with two children, ages 10 and 14. Her 10-year-old daughter has a history of ear infections that require doctor's office visits four or five times per year. Danielle's 71-year-old mother lives with the family for financial reasons; she has hereditary high blood pressure and high cholesterol as well as diabetes. Danielle's mother has enrolled in Medicare Parts A and B.

Danielle's employer pays all or a portion of the cost for a health care plan to cover the company's workers, their spouses, and their dependents. Danielle has four options: (1) the basic HMO managed by a local university medical school/hospital with no additional cost for Danielle, but with additional cost of $122 per month to cover her children, (2) a health insurance plan with a PPO at that same medical center for an additional cost of $245 per month, (3) a traditional health insurance plan that provides access to virtually all health care providers in her community for $455 per month, and (4) a high-deductible plan with a $5000 deductible at no additional cost. Danielle's employer offers no disability income or long-term care group plan. She does receive 10 sick days per year, which can accumulate to 60 days if not taken. Danielle has accumulated 30 days.

What do you recommend to Danielle DiMartino on the subject of managing health expenses regarding:

1. Choosing among the four alternatives available to her?

2. Danielle's concerns about providing for her mother's health care needs?

3. How Danielle can cover her long-term care risk?

4. Danielle's need for disability income insurance?