Patrick and Susie just welcomed a set of twins to their family and must decide how to purchase health insurance for the babies.

Patrick’s employer pays 100% of his monthly health insurance premium of $378, but will not pay for any of the $280 for each additional beneficiary. Susie’s employer, who pays 63% of her $403 monthly premium, offers to pay 32% of the $310 monthly premium for each additional beneficiary.

Which would be the most economical way to purchase health insurance for the family?

A. Insure the entire family (Patrick, Susie, and the twins) with Patrick's employer.

B. Insure the entire family (Patrick, Susie, and the twins) with Susie's employer.

C. Insure Patrick with his employer and Susie and the twins with her employer.

D. Insure Susie with her employer and Patrick and the twins with his insurer.

To determine the most economical way to purchase health insurance, the total costs of premiums are compared for four options. Option C, insuring Patrick with his employer and Susie and the twins with her employer, is the most economical choice with a total monthly cost of $583.11.

Explanation:

To determine the most economical way to purchase health insurance for the family, we need to compare the total monthly costs for each option.

Option A: Insure the entire family with Patrick's employer:
Patrick: $0 (paid by employer)
Susie: $280
Twins (2 x $280): $560
Total: $840
Option B: Insure the entire family with Susie's employer:
Patrick: $310 (32% covered by employer, equals $217)
Susie: $149.11 (63% covered by employer)
Twins (2 x $310, with 32% covered = 2 x $217): $434
Total: $800.11
Option C: Insure Patrick with his employer and Susie and the twins with her employer:
Patrick: $0 (paid by employer)
Susie: $149.11 (63% covered by employer)
Twins (2 x $310, with 32% covered = 2 x $217): $434
Total: $583.11
Option D: Insure Susie with her employer and Patrick and twins with his insurer:
Patrick: $0 (paid by employer)
Susie: $149.11 (63% covered by employer)
Twins (2 x $280): $560
Total: $709.11

After comparing the total costs, Option C proves to be the most economical choice for Patrick, Susie, and their twins, as it results in the lowest total monthly premium.