Health Insurance

Insurance, risk management, calculated risk

Transcript

1. www.lifethenfinance.com Health Insurance
3. 3 www.lifethenfinance.com Importance of Health Insurance: n  Incase you get sick or need any kind of medical attention. n  Can you afford to pay for a doctor`s visit without insurance? n  Depending on the type of doctor and practice it can cost from $95– $265 per visit. n  Insurance co-pays: $5–$50 per visit. n  Are you certain you won`t hurt yourself or catch some type of cold? n  Do you have allergies, wear contacts or need any other type of regular prescriptions? n  Can you afford those medications without insurance? n  On average prescription generic medications start around $50. n  Insurance co pays usually around $5–$20.
4. 4 www.lifethenfinance.com Health Insurance: n  Paying health insurance premiums can seem like a waste of money especially for those that are healthy. n  However having health insurance will protect you from sky-high medical bills if injured or if you experience a sudden illness. n  It is tempting to think, lI`m young and I never get sick,z and not to take health insurance if you have to pay for it. n  Don`t do this. You may be young, but you can break your leg snowboarding just as easily as anyone else. n  Any catastrophic accident or illness could lead to bankruptcy if one is does not have insurance n  It happens to a lot of people each year. Don`t be one of the 47 million uninsured Americans who play Russian roulette with their health and finances.
5. 5 www.lifethenfinance.com More about Health Insurance: n  Most employers provide health insurance but you have to pay a certain amount of the insurance premiums through their paycheck. n  Health insurance is a form of risk management that individuals use to protect themselves against an unpredictable health loss. n  An insurance policy is a contract between an individual and an insurance company that transfers that loss from the individual to the insurance company for a fee. n  All policies are not the same and should be reviewed carefully.
6. 6 www.lifethenfinance.com Health Insurance: What you need to know n  Doctor and medical facility availability: n  An individual needs to make sure the doctors, hospitals and medical groups they want to use are contracted with their insurance company. n  Premium (monthly cost): n  This monthly fee, which is paid by the individual, should be affordable and the individual should be able to maintain that premium over a period of time within the individual`s budget. n  Deductible: n  The amount that the policyholder must pay out-of-pocket before the health insurance plan pays its share. n  Co-payment: n  The amount that the insured must pay before the health plans pays. This is a lot like a deductible but is applied to individual services, which are usually waived from the deductible (except for prescription drugs).
7. 7 www.lifethenfinance.com Health Insurance: What you need to know…. Cont…. n  Exclusions: n  Not all services are covered in some plans. A lot of new plans do not have coverage for maternity or brand name prescription drugs. These exclusions can lower premiums. n  Out-of-pocket maximums: n  This is the amount where the policy holder`s obligation ends under coinsurance and the insurance company pays 100% of the cost. n  Health insurance policies can be very confusing. n  It is best to find an insurance agent who specializes in this kind of coverage and meet with them to review the details. n  Insurance plans are no more expensive using an agent than going direct.
8. 8 www.lifethenfinance.com Medical Bills n  Fact: n  Medical bills are the leading cause of bankruptcy and these bills can be avoided by having medical insurance.