1. Chapter 25 Section 1 Health Insurance

2. Objectives Explains the basic idea of insurance.
Name and describe the 2 basic types of health insurance.

3. Vocabulary Words Risk- chance of loss.
Catastrophe- a disaster or misfortune, often occurs suddenly.
Deductible- in traditional health insurance, amount the insured must pay on medical expenses before the insurance begins to pay.
Stop-loss Provision- a condition of health insurance that prevents a person’s out-of-pocket expenses from rising above a certain amount.
Co-insurance/Co-payment- a provision of health insurance that requires a policyholder to share in the expenses beyond the deductible amount.
Health Maintenance Organization (HMO)- alternative to traditional insurance in which all health care is provided for a fixed fee.

4. The Nature of Insurance
Catastrophe
Risks
Few people can bear catastrophes without serious hardship.
Catastrophe can affect the society as well.
The 3 kind of risks that people seek protection from are:
Personal Risks- illness, accident, disability, and unemployment
Property Risks- fire, vandalism, and natural disaster
Liability Risks- visitor hurt in your home
The basic idea of insurance is that a large group of individuals pay money into a common fund.

5. Types of Health Insurence
AAA
Individual & Family Plans
AARP
Tricare- military
Blue Cross Blue Shield
HAS- Health Savings Account
PPO
HMO
Unicare
Aetna
CIGNA

6. Traditional health Insurance Plans
In traditional health insurance plans, sometimes called fee-for-service plans, an insurance company pays a doctor or hospital for services preformed in treating a patient who is ill or injured.
There are 4 kinds of fee-for-service coverage. They are usually solid together in various combination.
Hospital expense
Surgical expense
Medical expense
Major medical expense

7. 4 kinds of fee-for-service coverage
Hospital expense- provides for hospital charges such as room and meals, operating room use, laboratory fees, and medications.
Surgical expense-covers a wide variety of medical products and operations, raging from sewing up a cut to replacing a heart valve.
Medical expense- usually combined with hospital and surgical-expense insurance.
Also known as physician’s expenses.
Major medical expense- this type of insurance protects against huge expenses results from a serious illness to accident.

8. Health Maintenance Organization (HMOs)
Unlike traditional health insurance plans, HMOs do not require patients to fill out insurance forms for payments to be made.
HMOs cover all health care, including regular office visits and checkups as well as treatment for illness and accidents.

9. Check Point 1. name 3 types of insurance companies.
2. what is major medical coverage?
3. what are the 3 kinds of risks that insurance protect us against?
4. what is another word for medical expense?