Chapter 6 Personal Risk Management

Slide 2 Why Do You Need Health Insurance? Health insurance is a plan for sharing the risk of medical costs. There are three basic types of plans. 6-2 Protecting Income o Fee-for-service o PPO o HMO Medicare and Medicaid are government- sponsored insurance.

Slide 3 What Is the Purpose of Disability Insurance? 6-2 Protecting Income Disability insurance provides income when the insured cannot work due to nonwork-related injury or illness. It replaces a portion of normal earnings. Short-term, long-term, and social security disability insurance are all options.

Slide 4 Who Needs Life Insurance? 6-2 Protecting Income Life insurance pays money to a beneficiary upon the death of the insured person. Temporary insurance provides a death benefit only. Permanent insurance provides a death benefit and builds cash value. Group life insurance is available through employers.

Slide 5 Focus On... Health Care Reform Most Americans will have insurance by Purchasing health insurance will be mandatory. Citizens cannot be denied coverage for pre- existing conditions. Tax increases will pay for health care reform. A major omission from the reform is a control on health care costs. 6-2 Protecting Income

Slide 6 Success Skills Dealing With Health Care Fraud 6-2 Protecting Income Health care fraud is false billing for medical services. o Examples: falsifying a diagnosis to justify unneeded tests, upcoding, unbundling Ten cents of every dollar goes toward fraudulent health care claims. Consumers can help prevent fraud. o Examples: ask questions about services and charges, audit bills, report suspected fraud