Please see attachments…This is PART B.

fin355_milestone_two_case_study1 partbfeedback fin355_milestone_two_case_study1

 Please see attachments…This is PART B. 

FIN 355 Milestone Two Case Study

Part A

Health Insurance

John’s company recently changed their health insurance offering. Jenny’s dental office does not
offer any health insurance options. John and Jenny can choose between the following two
health offerings:

Option 1 Option 2

Annual Deductible

• $1,500 if you cover yourself
only
• $3,000 if you cover yourself
plus one or more dependents

• $2,500 if you cover yourself
only
• $5,000 if you cover yourself
plus one or more dependents

Medical Coinsurance

• 10% of all covered in-
network services other than
certain preventive care
• 30% up to MRC of all
covered out-of-network
services other than certain
preventive care

• 10% of all covered in-
network services other than
certain preventive care
• 30% up to MRC of all
covered out-of-network
services other than certain
preventive care

Prescription Coinsurance

• 15% of the cost of the
generic (tier 1) drug up to
the per-prescription
maximum ($25 pharmacy,
$63 home delivery)
• 30% of the cost of the
preferred brand name (tier
2) drug up to the per-
prescription maximum
($100 pharmacy, $250 home
delivery)
• 50% of the cost of the non-
preferred brand name (tier
3) drug up to the per-
prescription maximum ($150
pharmacy, $375 home
delivery)

• 15% of the cost of the
generic (tier 1) drug up to
the per-prescription
maximum ($25 pharmacy,
$63 home delivery)
• 30% of the cost of the
preferred brand name (tier
2) drug up to the per-
prescription maximum
($100 pharmacy, $250 home
delivery)
• 50% of the cost of the non-
preferred brand name (tier
3) drug up to the per-
prescription maximum ($150
pharmacy, $375 home
delivery)

Annual Out-of-Pocket
Maximum
total amount of deductible
plus coinsurance
for covered in- and out-of-
network
medical and prescription
drug expenses
you may pay in a calendar
year

• $3,000 if you cover yourself
only
• $6,000 if you cover yourself
plus one or more dependents

• $4,500 if you cover yourself
only
• $9,000 if you cover yourself
plus one or more dependents

Cost $750/month $280/month

Long-Term Disability Insurance

Both spouses have group disability insurance from their employers.

John: Benefits equal 50% of salary subject to a maximum of $2,500 per month.

Coverage benefits are limited to 5 years. John’s employer pays for this
coverage.

Jenny: Benefits equal to 50% of salary subject to a maximum of $2,000 per month.
Jenny pays a premium for this, and she has a choice to pay with pre-tax
dollars or after-tax dollars. She currently has the premiums paid with pre-tax
dollars.

Additional Client Notes

Clients John and Jenny have a nice-size savings account with around $40,000 and a 401K

through John’s work that has a balance of $265,000. Jenny does not have a retirement account.

Part B

John and Jenny also want your help in answering questions about Social Security, Medicare,

Medicaid, and long-term care insurance. Below is information they have provided for your

analysis.

Demographics

Family Members Age Occupation Health

Jenny 54 Office manager Treated for mild depression.
5’4″, 135 pounds. No other health issues.

John 56 Sales manager Treated for high cholesterol.
6’1″, 186 pounds. No other health issues.

Emily (Child) 30 Married, lives in
another state far
away

No health issues

Tiffany (Child) 28 Single, attending
a graduate
program in
England

No health issues

Incomes

Income for the past three years and projected current year income for each spouse is shown
below in Table 1:

Table 1

Family Income

Year John Jenny

2013 $64,000 $0

2014 $67,000 $0

2015 $71,000 $47,000

2016 $74,000 $50,000

Table 1: Income for the past three years and projected current year income for each spouse

Current Assets/Information

Home valued at $550,000 is almost paid for. Six years remaining with a balance of $100,000.

John has a 401K with an approximate value of $480,000.

Jenny has a Roth IRA with an approximate value of $25,000.

Joint savings of roughly $50,000.

Both cars are paid for and in reasonable shape. John and Jenny expect to replace at least one
car in the next 5 years.

John has worked full-time as a sales manager for more than 30 years. Jenny has worked as an
office manager for the last 2 years and did not work previously. Jenny is uncertain about her

future with her current company and may not work much longer. She plans to work on some
home improvements around the house should she stop working and is hoping to spend more
time with some of her hobbies that she has missed over the years.

John’s expected Social Security benefits are as follows:

Age 62: $1,780/month
Age 66 (full retirement): $2,456
Age 70: $2,914

FIN 355 Milestone Two Part B Rubric
Activity: 5‐3 Final Project Milestone Two (Part B): Draft of Social Security, Medicare, and Medicaid Plans

Course: FIN‐355‐H7385 Risk Mgmt and Insurance Plan 22EW4

Name: Cierra Bogan

Criteria Proficient
Needs
Improvement

Not Evident Criterion Score

Social Security, Medicare, and

Medicaid: Common Eligibility

Requirements

22.5 / 30

3

0 points

Summarizes

common

eligibility

requirements for

Social

Security

and explains

how the clients

can maximize

their Social

Security

benefits

0 points

Does not

summarize

common
eligibility
requirements for
Social Security

and explain how

the clients can

maximize their

Social Security
benefits

Criterion Feedback

Nice job with explaining how SS is funded. There are more than two options for collecting SS.

They can start as early as 62 or as late as 70, and anywhere in between. There is a normal

retirement age, which is 67 for John and Jenny. Social security are not always paid when

taxpayers retire. They have to meet age and other requirements.

22.5 points

Summarizes
common
eligibility
requirements for
Social Security
and explains
how the clients
can maximize
their Social
Security

benefits, but

response is

cursory or

illogical or

contains

inaccuracies

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https://learn.snhu.edu/d2l/le/dropbox/1014989/turnitin/1661671/submission/24818432/64672427/RetrieveOriginalityReport

https://learn.snhu.edu/d2l/le/dropbox/1014989/turnitin/1661671/submission/24818432/64672427/RetrieveOriginalityReport

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Criteria Proficient
Needs
Improvement
Not Evident Criterion Score
Social Security, Medicare, and

Medicaid:

Medicare and

Medicaid

22.5 / 30
Social Security, Medicare, and

Medicaid: Retirement Age

22.5 / 30

30 points

Differentiates

between

Medicare and

Medicaid,

explaining how

and why the

clients will or

will not benefit

from the

programs, and

supports

explanation with

relevant

client

information

0 points
Does not

differentiate

between
Medicare and
Medicaid,
explaining how
and why the
clients will or
will not benefit
from the

programs

Criterion Feedback

Not all people receiving SS automatically qualify or are eligible for Medicare. A person who

starts at age 62 has to wait three years before qualifying. Spouse’s and children do not qualify

for Medicare just because one family member received Medicare.

30 points

Recommends a

retirement age

for each client

that will allow

them to take full

advantage of all

retirement

benefits, and

supports

recommendation

with relevant

client
information
0 points
Does not

recommend a

retirement age
for each client
that will allow

them to take

advantage of

retirement
benefits
22.5 points
Differentiates
between
Medicare and
Medicaid,
explaining how
and why the
clients will or
will not benefit
from the

programs, but

response is
cursory or
illogical or
contains

inaccuracies, or

supporting client

information is

irrelevant or

nonexistent

22.5 points
Recommends a
retirement age
for each client
that will allow
them to take
advantage of
retirement
benefits, but

recommendatio

n is illogical or

does not allow

clients to take

full advantage of

all benefits, or

supporting client
information is
irrelevant or
nonexistent
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Total 77.5 / 100

Overall Score

Criteria Proficient
Needs
Improvement
Not Evident Criterion Score

Articulation of Response 10 / 10

Criterion Feedback

Good suggestion suggesting that they wait to collect SS. Jenny is not eligible for Medicare at

60 unless she collects SS disability insurance.

7.5 points

Submission has

major errors

related to

citations,

grammar,

spelling, syntax,

or organization

that negatively

impact

readability and

articulation of

main

ideas

0 points
Submission has

critical errors

related to
citations,
grammar,
spelling, syntax,
or organization

that prevent

understanding of

ideas
Criterion Feedback

In the future, please use commas for each thousand, i.e. $1,000 instead of $1000.

Proficient
76 points minimum

Instructors should not modify

this row (it will automate from

the scores above). This score

represents the average

evaluation across all rubric

criteria.

Needs Improvement
1 point minimum

Instructors should not modify
this row (it will automate from
the scores above). This score
represents the average
evaluation across all rubric
criteria.

Not Evident
0 points minimum

Instructors should not modify
this row (it will automate from
the scores above). This score
represents the average
evaluation across all rubric
criteria.

10 points

Submission has

no major errors

related to
citations,
grammar,
spelling, syntax,
or organization
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FIN 355 Milestone Two Case Study

Part A

Health Insurance

John’s company recently changed their health insurance offering. Jenny’s dental office does not
offer any health insurance options. John and Jenny can choose between the following two
health offerings:

Option 1 Option 2

Annual Deductible

• $1,500 if you cover yourself
only
• $3,000 if you cover yourself
plus one or more dependents

• $2,500 if you cover yourself
only
• $5,000 if you cover yourself
plus one or more dependents

Medical Coinsurance

• 10% of all covered in-
network services other than
certain preventive care
• 30% up to MRC of all
covered out-of-network
services other than certain
preventive care

• 10% of all covered in-
network services other than
certain preventive care
• 30% up to MRC of all
covered out-of-network
services other than certain
preventive care

Prescription Coinsurance

• 15% of the cost of the
generic (tier 1) drug up to
the per-prescription
maximum ($25 pharmacy,
$63 home delivery)
• 30% of the cost of the
preferred brand name (tier
2) drug up to the per-
prescription maximum
($100 pharmacy, $250 home
delivery)
• 50% of the cost of the non-
preferred brand name (tier
3) drug up to the per-
prescription maximum ($150
pharmacy, $375 home
delivery)

• 15% of the cost of the
generic (tier 1) drug up to
the per-prescription
maximum ($25 pharmacy,
$63 home delivery)
• 30% of the cost of the
preferred brand name (tier
2) drug up to the per-
prescription maximum
($100 pharmacy, $250 home
delivery)
• 50% of the cost of the non-
preferred brand name (tier
3) drug up to the per-
prescription maximum ($150
pharmacy, $375 home
delivery)

Annual Out-of-Pocket
Maximum
total amount of deductible
plus coinsurance
for covered in- and out-of-
network
medical and prescription
drug expenses
you may pay in a calendar
year

• $3,000 if you cover yourself
only
• $6,000 if you cover yourself
plus one or more dependents

• $4,500 if you cover yourself
only
• $9,000 if you cover yourself
plus one or more dependents

Cost $750/month $280/month

Long-Term Disability Insurance

Both spouses have group disability insurance from their employers.

John: Benefits equal 50% of salary subject to a maximum of $2,500 per month.

Coverage benefits are limited to 5 years. John’s employer pays for this
coverage.

Jenny: Benefits equal to 50% of salary subject to a maximum of $2,000 per month.
Jenny pays a premium for this, and she has a choice to pay with pre-tax
dollars or after-tax dollars. She currently has the premiums paid with pre-tax
dollars.

Additional Client Notes

Clients John and Jenny have a nice-size savings account with around $40,000 and a 401K

through John’s work that has a balance of $265,000. Jenny does not have a retirement account.

Part B

John and Jenny also want your help in answering questions about Social Security, Medicare,

Medicaid, and long-term care insurance. Below is information they have provided for your

analysis.

Demographics

Family Members Age Occupation Health

Jenny 54 Office manager Treated for mild depression.
5’4″, 135 pounds. No other health issues.

John 56 Sales manager Treated for high cholesterol.
6’1″, 186 pounds. No other health issues.

Emily (Child) 30 Married, lives in
another state far
away

No health issues

Tiffany (Child) 28 Single, attending
a graduate
program in
England

No health issues

Incomes

Income for the past three years and projected current year income for each spouse is shown
below in Table 1:

Table 1

Family Income

Year John Jenny

2013 $64,000 $0

2014 $67,000 $0

2015 $71,000 $47,000

2016 $74,000 $50,000

Table 1: Income for the past three years and projected current year income for each spouse

Current Assets/Information

Home valued at $550,000 is almost paid for. Six years remaining with a balance of $100,000.

John has a 401K with an approximate value of $480,000.

Jenny has a Roth IRA with an approximate value of $25,000.

Joint savings of roughly $50,000.

Both cars are paid for and in reasonable shape. John and Jenny expect to replace at least one
car in the next 5 years.

John has worked full-time as a sales manager for more than 30 years. Jenny has worked as an
office manager for the last 2 years and did not work previously. Jenny is uncertain about her

future with her current company and may not work much longer. She plans to work on some
home improvements around the house should she stop working and is hoping to spend more
time with some of her hobbies that she has missed over the years.

John’s expected Social Security benefits are as follows:

Age 62: $1,780/month
Age 66 (full retirement): $2,456
Age 70: $2,914