Adam and Cassie Porterfield, a healthy couple in their mid- 30s, were delighted when Adam landed a new job with a promotion and increased salary. But, they were disappointed to learn that he would not be eligible for benefits for 90 days. The company offers a comprehensive package of health insurance, vision insurance, dental insurance, life insurance (1.5 times salary at no premium charge), short- and long-term disability insurance, and long-term care insurance. An employee can choose how to spend the employer-provided premium dollars to purchase any combination of insurance or additional life insurance. Fortunately, Cassie has group health insurance with a $1 million lifetime per covered individual.

Adam has heard that his employer offers a health insurance"opt-out" option with a $75 a month payment to the employee. Assuming Cassie’s employer offers very similar coverage limits, should Adam and Cassie consider the opt-out option? Discuss the pros and cons of "opting out", including the protection of the Health Insurance Portability and Accountability Act of 1996. What premium costs and opt-out payments should they consider in theira nalysis?