1. Managing Resources Personal Finance Unit 5 Health Insurance

2. Hospital Expense Insurance A.HOSPITAL EXPENSE INSURANCE—pays for all or part of your hospital bill 1.Room, meals, laboratory tests, x-rays, nurses’ care, medicine, anesthesia 2.Protects against the high cost of hospitalization 3.Usually has a deductible and may have limits 4.Blue Cross is an example

3. Surgical Expense Insurance Pays part of all of the surgeon’s fees 1.Certain amount covered for different types of operations 2.Frequently bought in combination with hospital insurance 3.Blue Shield is an example

4. Medical Expense Insurance Covers fees charged by doctors for services other than surgery --office visits, tests

5. Major Medical Insurance picks up where other health insurance ends to cover big expenses (serious illness or injuries) picks up where other health insurance ends to cover big expenses (serious illness or injuries) --usually pay a deductible and co-insurance (policyholder expected to pay a certain percentage) --usually pay a deductible and co-insurance (policyholder expected to pay a certain percentage)

6. Comprehensive Medical Insurance combines hospital, surgical, medical and major medical combines hospital, surgical, medical and major medical --usually a group plan --usually a group plan

7. Sources of Health Insurance A.INDIVIDUAL POLICY—purchases from an insurance agent --usually expensive but can be tailored for individual needs B.GROUP HEALTH INSURANCE—insurances made available through an employer, union, or other organization to their members --employers may pay all or part of the cost of the insurance for their employees C.HMO (Health Maintenance Organization)—normally consist of a staffed medical clinic organized to serve its members --fixed monthly fee D.GOVERNMENT INSURANCE 1.Worker’s Compensation—provide medical and survivor benefits for person injured, disabled or killed on the job --pays for all necessary medical expenses and 2/3 of normal wage while unable to work 2.Medicare—coverage for people over 65 3.Medicaid—pays for health care for the poor, blind, disabled, elderly and dependent children

8. What Determines Cost of Health Insurance A.EXTENT OF COVERAGE B.NUMBER OF CLAIMS FILED BY POLICYHOLDERS C.AGE OF POLICYHOLDER D.NUMBER OF DEPENDENTS