Group Health Insurance pp SECTION

Click to edit Master text styles Second level Third level Fourth level Fifth level 2 SECTION Copyright © Glencoe/McGraw-Hill 2-5 Section Objective Calculate: deduction for group insurance

Click to edit Master text styles Second level Third level Fourth level Fifth level 3 SECTION Copyright © Glencoe/McGraw-Hill 2-5 group insurance (p. 126) Insurance offered by many businesses to employees, paid in part by the business and in part by deductions from employees’ paychecks. Key Words to Know

Click to edit Master text styles Second level Third level Fourth level Fifth level 4 SECTION Copyright © Glencoe/McGraw-Hill 2-5 Employee’s = Annual × Employee’s Share Amount Percent Formula 1

Click to edit Master text styles Second level Third level Fourth level Fifth level 5 SECTION Copyright © Glencoe/McGraw-Hill 2-5 Deductions per Pay Period = Total Annual Amount Paid by Employees Number of Pay Periods per Year Formula 2

Click to edit Master text styles Second level Third level Fourth level Fifth level 6 SECTION Copyright © Glencoe/McGraw-Hill 2-5 Describe at least two scenarios when a young, healthy person would need health insurance. Jack’s Jackpot p. 126

Click to edit Master text styles Second level Third level Fourth level Fifth level 7 SECTION Copyright © Glencoe/McGraw-Hill 2-5 Lawrence Butler has family medical coverage through the group medical plan his employer provides. The annual cost of the plan is $4,500. The company pays 80 percent. How much does Butler pay annually? Example 1

Click to edit Master text styles Second level Third level Fourth level Fifth level 8 SECTION Copyright © Glencoe/McGraw-Hill 2-5 Find the percent paid by employee. 100% – Percent Company Pays 100% – 80% = 20% Example 1 Answer: Step 1

Click to edit Master text styles Second level Third level Fourth level Fifth level 9 SECTION Copyright © Glencoe/McGraw-Hill 2-5 Find the total amount paid by employee. Annual Amount × Employee’s Percent $4,500 × 20% = $ Example 1 Answer: Step 2

Click to edit Master text styles Second level Third level Fourth level Fifth level 10 SECTION Copyright © Glencoe/McGraw-Hill 2-5 Nicholette McClure has family medical coverage through the group medical plan her employer provides. The annual cost of the plan is $5,000. The company pays 75 percent. How much is deducted from her biweekly paycheck for medical insurance? Example 2

Click to edit Master text styles Second level Third level Fourth level Fifth level 11 SECTION Copyright © Glencoe/McGraw-Hill 2-5 Find the percent paid by employee. 100% – Percent Company Pays 100% – 75% = 25% Example 2 Answer: Step 1

Click to edit Master text styles Second level Third level Fourth level Fifth level 12 SECTION Copyright © Glencoe/McGraw-Hill 2-5 Find the total amount paid by employee. Annual Amount × Employee’s Percent $5,000 × 25% = $1,250 Example 2 Answer: Step 2

Click to edit Master text styles Second level Third level Fourth level Fifth level 13 SECTION Copyright © Glencoe/McGraw-Hill 2-5 Find the deduction per pay period. Total Annual Amount Paid by Employee Number of Pay Periods per Year $1,250 ÷ 26 = $48.08 Example 2 Answer: Step 3

Click to edit Master text styles Second level Third level Fourth level Fifth level 14 SECTION Copyright © Glencoe/McGraw-Hill 2-5 Annual cost of insurance: $4,160. Employer pays 80 percent. 52 pay periods. Find the deduction per pay period. Practice 1

Click to edit Master text styles Second level Third level Fourth level Fifth level 15 SECTION Copyright © Glencoe/McGraw-Hill 2-5 $16 Practice 1 Answer

Click to edit Master text styles Second level Third level Fourth level Fifth level 16 SECTION Copyright © Glencoe/McGraw-Hill 2-5 Ken Fujimoto’s employer pays 90 percent of his medical insurance and 60 percent of his dental insurance. Medical insurance costs $3,400 per year and dental insurance is $1,300. How much is deducted from Ken’s semimonthly pay for medical insurance? How much for dental insurance? Practice 2

Click to edit Master text styles Second level Third level Fourth level Fifth level 17 SECTION Copyright © Glencoe/McGraw-Hill 2-5 Medical: $14.17 Dental: $21.67 Practice 2 Answer

Group Health Insurance 2-5 END OF SECTION