Budget Project Vocabulary

Health Insurance Why do we need health insurance? Do we need health insurance if we are healthy?

Health Insurance Deductible: The amount a customer pays toward covered expenses before the plan pays benefits. EXAMPLE: $1,000 deductable vs. $7,000 deductable -You have to provide less or more money before insurance kicks in. -The lower the deductable, the more expensive the insurance.

Health Insurance Office Co-pay: A benefit that allows you to pay only a flat dollar amount for eligible in-network physician office visit services. This option may not be available with all plan types. In-network Physician: A doctor who participates in the health insurance program. Not all doctors participate.

Health Insurance cont. Coinsurance Percentage: This refers to the amount of covered expenses you pay after the deductible. You usually share the cost of covered expenses with the insurer. For example, a coinsurance percentage of 75% means that, after the deductible, the insurer pays 75% of covered expenses and you pay 25%. For a $1,000 Emergency Room visit, insurarance pays for $750 and you have to pay $250.

Sample Costs for a Medical Emergency Service: Lower Leg Fracture Surgery Hospitalization to receive Lower Leg Fracture Surgery Fee: $11,107 Fee Details: Price is for a 5 day admission. More days charged at $1800 per day. Fewer days will reduce price by $1800 per day.

Stitches… Physician Services Service: Suture Of Skin Cut - Stitches for skin cut. Fee: $263 Fee Details: Procedure fee. Total Fair Price: $263

Health Insurance Cont. Coinsurance Out-of-Pocket This is the percentage of covered expenses the plan pays after the deductible. After the Out- of-Pocket maximum is met, the plan pays 100% of covered expenses.

Health Insurance A health maintenance organization (HMO) is a type of managed care organization (MCO) that provides a form of health care coverage in the United States that is fulfilled through hospitals, doctors, and other providers with which the HMO has a contract. Unlike traditional indemnity insurance, an HMO covers only care rendered by those doctors and other professionals who have agreed to treat patients in accordance with the HMO's guidelines and restrictions in exchange for a steady stream of customers.

The Health Maintenance Organization Act of 1973 required employers with 25 or more employees to offer federally certified HMO options if the employer offers traditional healthcare options.

In Other Words…some words to know keen 1 (kiːn) — adj (foll by on ) 1. eager or enthusiastic 2. fond (of); devoted (to): keen on a girl ; keen on golf 3. intellectually acute: a keen wit 4. (of sight, smell, hearing, etc) capable of recognizing fine distinctions 5. having a sharp cutting edge or point 6. extremely cold and penetrating: a keen wind 7. intense or strong: a keen desire

Renting vs. Owning Rent vs. Owning Rental leases usually are for 1 year. You never get your rent back, it goes to the owner of the unit/building. When you own, you put a down payment, which is usually 10% of total cost plus closing costs – usually also about 10%. (20% total) Then each month you pay a mortgage, which is the money owed to pay for the house plus interest on your loan. Typical mortgages are 30 years.

Renting Apartments/Houses There is a trade off for a cheap apartment: location, size and amenities. Is your apartment in a high crime area or in an area far away from everything? LOCATION LOCATION LOCATION How many square feet or rooms does your apartment have? Is there laundry, dishwasher, porch, balcony etc.? Typically when you rent an apartment you have to pay a security deposit, which is usually 2 months rent. You get your security deposit back at the end of your rental lease if you did not damage the apartment.