Health InsuranceMr. Peterson
http://www.youtube.com/watch?v=nXfGeMNnBsM&list=PLAEF1F13C29ACCC01&index=1&feature=plpp_video
Video
Protect against economic loss in the event of serious accidents or illnesses.
Protect against the rising cost of health care, which is outpacing other costs in general.
Importance of Health Insurance
Private Insurance Available to individuals or families Provided as group health insurance plans
through various employers Government Health Insurance Plans
Medicare Medicaid
Workers’ Compensation
What are my options?
Fee-for-service plans (Indemnity) Pay deductible plus a percentage of eligible
costs before insurance will pay 80/20 Co-pay Pays for medical tests and prescription drugs
as well as hospital and doctor fees
Private Insurance
Managed Care Plans Contract with specific doctors and other health
care providers Charge monthly fees plus small co-payments
for service No deductible Health Maintenance Organizations (HMOs) Preferred Provider Organizations (PPOs)
Private Insurance
Provide a list of participating doctors Must go through primary care doctor for
other treatments Go outside the plan, pay the bill
Health Maintenance Organizations (HMOs)
Insurance company or provider contracts with network of physicians and hospitals
Network agrees to accept a negotiated fee for services provided to PPO customers
Lower cost to stay in network
Preferred Provider Organizations (PPOs)
Primary care doctor supervises plan and makes referrals
Pay more for nonparticipating specialists
Point-of-service (POS) plans
Premiums Amount you or your employer pay monthly
Co-insurance Amount or share of the costs you must pay for
services 20% up to a stated annual maximum
Deductible
Indemnity and Managed Care
Preauthorization Utilization Reviews
Assessment of appropriateness and necessity Pre-existing conditions Renewability
Indemnity and Managed Care
Maximum Benefits Open enrollment period
Enroll in plan or change coverage options Exclusions
Mental health care, dental, etc…
Indemnity and Managed Care
Coverage Benefit packages and care providers Premiums and deductible Uncovered costs Conversion to individual plan
Choosing a Plan
Consolidated Omnibus Budget Reconciliation Act At your expense, you can continue your
previous employer’s coverage for up to 18 months after you leave the job.
WHY DOES THIS MATTER?
COBRA
How the Most Common Types of Health Plans Compare
Which would you rather have?
Medicare 65 and older (disabled individuals under 65) Health insurance administered by Social
Security Funded by payroll taxes paid by employers,
employees (half premium), and the self-employed (full premium)
Covers inpatient for 150 days
Government Health Insurance Plans
Part A- Basic hospital coverage (deductible) Provided free for those who qualify Covers hospital room and board Deductibles apply
Part B – Supplementary medical insurance Optional for a monthly premium if eligible for Part
A Covers doctors and surgeons, lab tests, x-rays,
and possibly some home health care. Financed by government and monthly premiums
Medicare
State administered for people of low economic means
Federal government funded with state and local tax
Eligibility and levels of coverage vary by state Home health care Dental and eye care Prescription drugs
Medicaid
Mandatory health insurance that compensates workers for job-related illness or injury.
Premiums paid by employers. Premiums based on merit; employers who
file the most claims pay the highest rates State administered; coverage varies.
How does this compare to the others?
Workers’ Comp
Insured’s health Family health history Occupation or hobbies Gender
Women live longer, and in turn pay less. Why? Age of insured
Pay more as you get older. Why?
Factors Affecting Cost
http://www.inc.com/magazine/20051101/handson-case-study.html
Real Life Scenario
Get into groups of 2 or 3. Discuss each of the following cases.
Would you accept or decline the person in the case?
Why or why not? Would you make this person pay more or less?
Group Time
26 years old Male Previous family history of heart problems No major medical surgeries Works in a mine
Case 1
Female 45 years of age Chain smoker Librarian No history of major family issues Clean bill of health
Case 2
Male 35 years of age Falls under the definition of obese Works a minimum wage job Had a major illness when 12 No family history of illnesses
Case 3
Female 53 years old Family history of cancer Works in a car factory Clean bill of health
Case 4