Presentation on theme: "Peace of Mind Insurance can give you financial security and peace of mind, especially in case of unexpected expenses. When do people use insurance?"— Presentation transcript:
Peace of Mind Insurance can give you financial security and peace of mind, especially in case of unexpected expenses. When do people use insurance?
Lesson Objective Compute health insurance premiums. Content Vocabulary health insurance Provides financial protection against overwhelming medical expenses. traditional plan preferred provider organization (PPO) health maintenance organization (HMO) traditional plan Offers health care coverage where the health care provider is paid a predetermined dollar amount for the service given. preferred provider organization (PPO) A group of selected health care providers who offer comprehensive services at preset reimbursement levels. health maintenance organization (HMO) A prepaid health plan in which care providers contract with (or are) employees of the HMO to provide you with services.
Sean Derricotte has a family membership in a group medical insurance program. The annual premium is $6,180. Derricottes employer pays 80 percent of the total cost. His contribution is deducted monthly from his paycheck. What is Derricottes annual contribution? What is his monthly deduction? Example 1
Find the employees percent. 100% – 80% = 20% Example 1 Answer: Step 1
Find the employees annual contribution. Total Premium × Employees Percent $6,180.00 × 20% = $1,236.00 Example 1 Answer: Step 2
Find the employees monthly deduction. Employees Contribution ÷ 12 $1,236.00 ÷ 12 = $103.00 Example 1 Answer: Step 3
Paul Esnerado has a family PPO group medical insurance plan. The total cost is $13,900. His employer pays 85 percent of the total cost. He also has the optional annual dental, which costs $950, and the optional vision care, which costs $315. Practice 1
His employer pays 50 percent of dental and vision costs. How much is deducted each week from his paycheck for medical, dental, and vision insurance combined? Practice 1 (cont.)
Tim Landau is a self-employed custom furniture maker. He pays 100 percent of his family HMO annual premium of $10,200. He also has a dental plan that costs $700, and an annual vision plan that costs $260. The premiums are paid quarterly. How much does he pay quarterly for insurance? Practice 2