1. HEALTHCARE INSURANCE – THE BASICS

2. Lesson Objectives
Students will learn the pros and cons of health insurance Students will be introduced to the different terms related to health insurance Students will compare health insurance plans
Financial Literacy Healthcare Insurance

3. Learning Outcomes
Students will better understand the complicated system of healthcare insurance by exploring the critical terms within and comparing healthcare plans.
Financial Literacy Healthcare Insurance

4. Why Health Insurance?

5. What You Should Know About Health Insurance
Health Insurance: The Basics
What You Should Know About Health Insurance
Insurance costs a lot but having none costs more
If your employer offers insurance, grab it
Comparing plans is tough but necessary
The lowest premium isn’t always the cheapest plan
Even good coverage can have big loopholes
You’ll pay more for freedom
You can check out networks before signing up
You can keep your insurance if you lose your job
Working couples have more to think about
Tax breaks can help
Top ten provided by
Financial Literacy Healthcare Insurance

6. Why Pay for Health Insurance
The Basics
Why Pay for Health Insurance
At some point in your life you will probably need expensive medical care
Health Insurance, like other kinds of insurance, protects you against significant financial loss
It ensures you can afford medical help when you need it
Health Insurance can help keep you healthy by detecting and treating dangerous medical conditions before they become serious
Financial Literacy Healthcare Insurance

7. Different Types of Insurance

8. Types of Health Insurance
INFO
PRO
CON
Fee-for-services:
pay as you needed
Visit any provider
Expensive/restrictions on what services provided
HMO
Pay monthly premium
Lower Cost
Visit only in-network providers
PPO
Visit in-network providers and some reimbursement for out-of-network providers
More expensive than HMO
More restrictions than Fee-for-service
Medicare
Insurance for 65+
and some disabled
Paid for through wages already collected by government
Limited coverage and providers
Medicaid
Public Assistance Program – based on financial need
Free insurance for those in need
Minimal coverage and must qualify under local guidelines
UNIT 3LESSON 6
Financial Literacy Healthcare Insurance

9. Some things to Consider when Comparing Health Insurance Plans
Premiums
Copayments – Office Visits and Prescriptions
Deductible
Co-insurance
Out-of-Pocket Expenses
Emergency Room
Financial Literacy Healthcare Insurance

10. Premiums
The amount you pay monthly for your selected health insurance.
Option 1
Employee
Employee + Spouse or child
Employee + Family
Premium
$500
$825
$1,010
Option 2
Employee
Employee + Spouse or child
Employee + Family
Premium
$300
$600
$775
Option 3
Employee
Employee + Spouse or child
Employee + Family
Premium
$150
$350
$500

11. Premiums Complete the Comparing Health Care Premiums activity.
Financial Literacy Healthcare Insurance

12. Co-pays
The cost you pay at the time services are rendered. Typical copays are for office visits, prescriptions, and emergency room visits.
Co-pays
Option 1
Option 3
Office Visits
$30
$20
$15
Prescriptions
Emergency Room
$100
$200
Financial Literacy Healthcare Insurance

13. Deductible
The amount you will pay for services BEFORE your health insurance will start paying. You start this process over at the beginning of every year. Typically, the higher the deductible, the lower the premium. 
Deductible
Option 1
Option 2
Option 3
Deductible per person
$1,000
$1,500
$2,000
Deductible per family
$3,000
$4,500
$6,000
Financial Literacy Healthcare Insurance

14. Employee + Spouse or child
Co-insurance
Once your deductible amount has been met (you have paid for services in the amount of your stated deductible), your insurance kicks in and starts paying for its share of coverage; but only at the rate stated in your plan.
Co-insurance (in %)
Employee
Employee + Spouse or child
Employee + Family
90/10
80/20
70/30
Financial Literacy Healthcare Insurance

15. Out-of-Pocket Expenses
This is an agreed upon maximum amount that you will pay for services out-of-pocket. This amount starts being calculated at the beginning of each year. Typically any amount you pay towards your deductible and co-insurance is put towards this balance.
Out-of-Pocket Expenses
Employee
Employee + Spouse or child
Employee + Family
90/10
80/20
70/30
Financial Literacy Healthcare Insurance

16. Complete the lesson

17. Complete the Lesson…
Complete the Comparing Health Plan Options activity.
Financial Literacy Healthcare Insurance