Personal Finance Health Insurance
Aim: How does Health Insurance work?
Sections & Resources Notes & Content
TRY NOW Discuss with a partner and write in your responses for 1 -3.
1. Depending on your age and other risk factors, health insurance
premiums can be quite high. Why do you think that is? Provide an
example to illustrate your point.
A higher age may indicate more health problems and thus a higher
premium.
2. What do you think the average visit to the Emergency Room will
cost?
$10000
3. Why might it be even MORE expensive to NOT have health
insurance coverage at all?
Because you pay for high priced medical bills.
INFORMATIONAL Health Insurance Explained:
VIDEOS With a partner, watch the video, “Health Insurance Explained”. As you
1. What is Health follow along in the EdPuzzle, answer the questions below.
Insurance? Highlight the correct response in your notesheet.
(Watch 0:45 - 3:21)
NOTE: EdPuzzle videos shuffle answer choices and do not always match
2. Health Insurance the order provided in the lesson here.
Explained
(EdPuzzle) 1. What are the three primary sources of health insurance? (three
correct answers)
a. Employer-sponsored
b. Medicaid
c. Purchase individually from an insurance agent
d. Purchase from the Health Insurance Marketplace
2. What is the difference between a copay and coinsurance?
a. Copay is typically a percentage of the health care service,
coinsurance is a flat fee
b. Copay is typically a flat fee, coinsurance is a percentage of
the health care service
c. Copay is paid by the individual when receiving a health
care service, coinsurance is paid by the insurance
company
d. Copay is paid by the insurance company, coinsurance is
paid by the individual when receiving a health care
service.
Sections & Resources Notes & Content
3. Define out of pocket maximum.
a. A flat-rate fee you must pay when receiving any kind of
health care service.
b. The maximum amount of money your insurance will cover
for a certain health care service.
c. The maximum amount you will have to pay out of pocket
in one year for the benefits your insurance covers.
d. The maximum amount of money the insured party will
pay toward prescription medications.
4. In which of the following plans will your insurance NOT pay if you
go out-of-network?
a. PPO
b. HMO
5. Who should you contact if you have questions about your health
insurance coverage? (two correct answers)
a. Food & Drug Administration
b. Your insurance company
c. Your doctor or hospital
d. Health Resources & Services Administration
ARTICLE Employer Based Coverage
● Employer Based As the previous video mentioned, you can get health insurance through
Coverage Medicaid, your employer, or an independent policy.
With your partner, read the first section of this article on the 4 benefits of
using an employer-sponsored plan, and then answer the questions.
1. What does guaranteed issue mean, and why is this potentially
very beneficial?
Guaranteed issue means you cannot be denied coverage due to
pre-existing health conditions. This is very beneficial because it ensures
access to health insurance regardless of your medical history.
2. What is the tax benefit of purchasing health insurance through
your employer?
The tax benefit of purchasing health insurance through an
employer is that the premiums are paid with pre-tax dollars,
reducing your taxable income.
3. What TWO parties pay for YOUR health insurance if you enroll in
an employer-sponsored plan? Who pays if you buy insurance
directly from a marketplace?
For employer-sponsored plans, both you and your employer pay a portion
of the premiums. If you buy insurance directly from a marketplace, you
pay the full premiums yourself.
TOOLS Investigate Buying a Health Plan
Sections & Resources Notes & Content
● Plan Finder Currently, if you’re under 26, you have the option of staying on your
parent’s health insurance plan. Or, as you’ve seen in the previous resource,
it’s typically a great idea to enroll in an employer-sponsored plan if offered.
Alternatively, you can find a plan from an online health insurance seller
and compare different plans to find what is best for you.
1. Open the Plan Finder and select “Compare Plans & Estimate
Costs”. Enter your Zip Code to get started. Scroll down until you
see the section “Filter Options” and then enter the basic
information required.
Use the search results to answer:
a. What is the typical premium price range for someone in
your demographic?
842
b.
What is the typical deductible you find with these plans
(click “view details” of one of the plans)?
9450 per person
c. Do these plans seem affordable to you? Why or why not?
Yes given an ample salary of 150k
EXIT TICKET Why is it important to have health insurance coverage?
To avoid harsh medical bills that can devestate your life.
BONUS Now that you’ve learned the fundamentals of health insurance plans,
SUPPLEMENTAL continue your learning with this Bonus Activity! Here you will practice
MATERIAL(S) reading through a sample policy! Follow the directions on the worksheet
● FINE PRINT: to complete this activity.
Health Benefits
Form
