For several years, Annie’s employer has offered a traditional indemnity plan for healthcare coverage for herself, her husband Jim, and their children, Tess and Tasha. Annie and Jim are in their early...

1. For several years, Annie’s employer has offered a traditional indemnity plan for healthcare coverage for herself, her husband Jim, and their children, Tess and Tasha. Annie and Jim are in their early 30s; their children are 10-years old twins. Recently, the monthly premium for their insurance coverage increased drastically. Annie’s employer has decided to offer a high-deductible health plan where the family will have an initial deductible of $ 5000. The cost of this high-deductible plan has a monthly premium that is almost 50% lower than the indemnity plan.

Describe the steps Annie might follow in deciding whether to choose this plan or to remain with the more expensive indemnity plan.