Lecture notes on health insurance 2 of 2 if we want everyone to get health care, then the botton line is that we need to subsidize the sick at least somewhat. Before you can choose the right health plan, you need to understand the basics of health insurance. Explain the basics of health insurance and how it works. Glossary of health coverage and medical terms page 1 of 4 glossary of health coverage and medical terms this glossary has many commonly used terms, but isnt a full list. Choose from 500 different sets of basics of health insurance flashcards on quizlet.
Health insurance basics not all health insurance is set up the same way health insurance plans may use any or all of the following. Even if you are in good health, you never know when you might have an accident or get sick. Health insurance companies collect premiums and pay out benefits. Health insurance is a product that covers your medical expenses. Health insurance basics simplifies health insurance for you, making it easy to understand how it works, the different types of plans, and how you can get the most out of your plan. Health insurance basics elearning courseonline training. Health insurance basics part 1 while learning about health insurance is often complicated, host malachy cleary breaks it down into simpler terms in this video. The purchase price andor the car payments are just the most obvious of costs. Insured is increased by a certain percentage at the time of. You may want to consult an attorney for legal guidance about your specific rights. Health insurance basics aegon life insurance company. The medical costs are split between the insurance company and the subscriber. That is why choosing a health insurance plan that is right for you, and understanding how it works, may seem confusing.
Health insurance is a way to manage the cost of health care. Dealing with health insurance as a young person can be tricky. There are two main types of health insurance coverage. Since passage of the landmark patient protection and affordable care act in march 2010, the health insurance market has undergone its biggest transformation in decades. Insurance is a form of risk management in which the insured transfers the cost of. Health maintenance organization hmo a health care system that assumes both the financial risks associated with providing comprehensive medical services insurance and service risk and the responsibility for health care delivery in a particular geographic area to hmo members, usually in return for a fixed, prepaid fee. Health insurance protects you from the high cost of medical care by providing coverage for specific health care services. And, with the new health insurance marketplace, its. Health insurance is your insurance company listening to you. Definitions of health insurance terms in february 2002, the federal governments interdepartmental committee on employmentbased health insurance surveys approved the following set of definitions for use in federal surveys collecting employerbased health insurance data. Health insurance can protect you from these high costs.
Health insurance premiums and deductibles are up again this year. During this course we will use common claim scenarios to illustrate how a wellintegrated insurance program works, giving professional services firms a concise resource for understanding insurance. Hmos, ppos and pos plans are all types of managed care. This is the monthly amount you pay to be a member of a specific plan. Coinsurance a form of medical cost sharing in a health insurance plan that requires an. Fundamentals of employee benefit programs, fourth addition. Life, accident and health producer indiana examination content outline 160 questions total time limit 2 hours 40 minutes revised 7102015 i.
Feeforservice indemnity plan obtained by individuals on their own, or through groups, such as employers or associations. Generally offer the freedom to choose your own healthcare providers including specialists and hospitals. If you still have questions, refer to our frequently asked questions faq or call one of our independence blue cross representatives. Health insurance basics what is the role of health insurance. Shopping for insurance can be confusing, but the affordable care act aca makes it easier to understand. If you are enrolled in a health plan on your own and pay the premiums directly to the carrier, then you likely have an individual health insurance plan. The basics procedurelecture outline 1 guide students through the power point presentation link a. These glossary terms and definitionsare intended to be educational and may be different from the terms and definitions in your plan. Learn about the fundamentals of individual and family health insurance. Although you generally pay a monthly premium and either copayments or co insurance, the cost for insurance is far less than medical care would be if paid fully.
The affordable care act does not change va health benefits. General insurance such as principles of utmost good faiths material fact principle of insurable insures and principle of indemnity. Health insurance basics and the federal marketplace in indiana. We all take our health and wellbeing for granted, but with longer working hours and lesser physical activity, it is hard to avoid certain lifestyle disorders. Everybody who has health insurance pays a premium, but the size of the premium varies.
People 65 and older people younger than age 65 with certain disabilities entitled to social security disability or railroad retirement board benefits for 24 months the 24month waiting period is waived for people with. This simple guide will help you make smarter choices for you and your family. Youre not alone if youre struggling to understand all the ins and outs of health insurance today. Different health insurance policies can offer different benefits, and some can limit which doctors, hospitals, or other providers you can use. If your health cinsurance coverage is offered through your employer, you are part of roughly 160 million americans who have a group health insurance plan, according to the center for disease controls national center for health statistics. Insurance handbook insurance information institute. You may have to pay a deductible each plan year before your insurance company starts to pay for your care. A flat dollar amount you must pay out of your own pocket before your.
A trip to the hospital can be much more costly than you might expect. Premium copayment coinsurance deductible outofpocket maximum health insurance plans may have different rules about how these key terms are applied, for example. Auto insurance provides property, liability and medical coverage. Here youll find helpful information on buying and using health insurance, understanding health and wellness programs, and learning health care terminology. Health insurance basics 101 guide to health insurance. For new cars, maintenance costs are quite minimal, unless you have a lemon and have to waste all your time going to. One of the key decisions in deciding what car to buy is assessing how much all the other costs are that come with ownership. A health savings account is an individual savings account that. To cope with the potentially high costs of medical care, insurance policies provide some financial protection. Insurance costs a lot but having none costs more ii. Health insurance 101 words to know when you need medical care 00.
Like auto insurance covers your car if you get into an accident, health insurance covers you if you get sick or injured. As part of the affordable care act signed into law in 2010, most americans are required to have basic health insurance. Medicare and medicaid basics mln booklet page 4 of 10 icn 909330 july 2018 beneficiaries medicare health insurance for. General insurance comprises of insurance of property against fire, burglary etc, personal insurance such as accident and health insurance, and liability insurance which covers legal liabilities. Explain the basics of health insurance and how it works point out some things to look for in a health insurance plan suggest what things to consider and what questions. Health insurance protects your finances as well as your health by limiting your liability for medical costs having at least a basic level of health insurance can mean the difference between starting your adult life on the right foot or starting out bankrupt now that health reform passed, do i even need a health insurance plan. Your insurance policy, program rules, wisconsin law, federal law, and court decisions establish your rights. To read more about insurance, see our special insurance feature. Health insurance involves three kinds of costs you might have to pay 1. Although you generally pay a monthly premium and either copayments or coinsurance, the cost for insurance is far less than medical care would be if paid fully. Basic health insurance coverage is what the affordable care act calls minimum essential coverage mec or qualifying health coverage. Why is it important to know about health insurance. A guide to insurance basics for college students this publication is not a legal analysis of your rights under any insurance policy or government program. We all need to make a conscious effort to change our lifestyle, but we also need to stay protected with a.
The purpose of health insurance the purpose of health insurance is to help individuals and families offset the costs of medical care. It protects you and your family from financial losses in the same way that home or car insurance does. It is estimated that outofpocket expenditure of over 1520 % of total health expenditure or 40. Auto insurance basics auto insurance protects against financial loss in the event of an accident. Review the following questions to answer your basic health insurance questions and view informational videos. Point out some things to look for in a health insurance plan. No single plan will cover all costs associated with medical care. Health insurance basics independence blue cross ibx. Many individuals with insurance are covered under an employerbased plan options offered and partially funded by their employer. Benefits of health insurance blue cross and blue shield. Now that youve learned the basics with this life insurance 101 guide, it should be easier for you to make a decision about what type of coverage you should get. Learn basics of health insurance with free interactive flashcards. Supplemental background material afe 1 life and health insurance fundamentals passing grade for this exam is 70 please note that this study guide is a tool for learning the materials you need to effectively study for this.
If you buy health insurance, it can easily cost you less money than going to the hospital without it. It is a contract between the policyholder and the insurance company. A wise person once said that your family is just one serious illness away from bankruptcy. The legislation has greatly reduced the number of those without health insurance and, for some, has made coverage more accessible. But when it happens to you or your family, it can cost a lot of money to get care. To avoid the penalty for not having basic health insurance, you must be enrolled in a plan that qualifies as minimum essential coverage. Moreover, we need to force the healthy to get health insurance or let insurer charge di erently for the sick from the healthy.
Understanding the type of health insurance you have. There is power in numbers, especially when it comes to finding affordable health insurance. The policyholder agrees to pay the premium and the insurance company agrees to pay losses as defined in the policy. There are both private and public health insurance plans, with different plans offering different benefits. Health insurance is a contract between you and your health insurer to cover your medical expenses. Health insurance is one of the ways that people in various countries finance their medical needs. The health insurance basics onehour online elearning course helps professionals that counsel, or assist, health care consumers. Introduce the lesson by showing the students 10 things they should know about health insurance i. Simplyinsured has all the resources you need to get you up to speed. General insurance comprises of insurance of property against fire, burglary etc, personal insurance such as accident and health insurance, and. If you have health insurance coverage through a privatesector employer, you can.
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