The Baulding family has a basic health insurance plan the pays 80 percent of out-of-hospital insurance expenses up to $3,000 a year after a deductible of $250 per person. If the three family members have a doctor and prescription drug expenses of $980, $1,840, and $220, respectively, How much will the Bauldings family and the insurance company each pay? How could they benefit from a flexible spending account established through Mr. Bauldings employer? What are the advantages and disadvantages of establishing such an account?