To read more about insurance, see our special insurance feature. It is estimated that outofpocket expenditure of over 1520 % of total health expenditure or 40. 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. Insured is increased by a certain percentage at the time of. Health insurance companies collect premiums and pay out benefits. That is why choosing a health insurance plan that is right for you, and understanding how it works, may seem confusing. You may want to consult an attorney for legal guidance about your specific rights. 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. Health insurance 101 words to know when you need medical care 00. 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. Health insurance is one of the ways that people in various countries finance their medical needs. Insurance handbook insurance information institute. This is the monthly amount you pay to be a member of a specific plan. Health insurance is your insurance company listening to you.
This simple guide will help you make smarter choices for you and your family. Health insurance protects you from the high cost of medical care by providing coverage for specific health care services. Health insurance basics elearning courseonline training. And, with the new health insurance marketplace, its. If you still have questions, refer to our frequently asked questions faq or call one of our independence blue cross representatives. Understanding the type of health insurance you have. Auto insurance basics auto insurance protects against financial loss in the event of an accident.
Dealing with health insurance as a young person can be tricky. Find out more life insurance 101 basics in getting life coverage as a senior citizen. 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. These glossary terms and definitionsare intended to be educational and may be different from the terms and definitions in your plan. Youre not alone if youre struggling to understand all the ins and outs of health insurance today. 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. Insurance costs a lot but having none costs more ii. Health insurance is a product that covers your medical expenses. The affordable care act does not change va health benefits. 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 basics and the federal marketplace in indiana. Point out some things to look for in a health insurance plan. Here youll find helpful information on buying and using health insurance, understanding health and wellness programs, and learning health care terminology.
General insurance such as principles of utmost good faiths material fact principle of insurable insures and principle of indemnity. Your insurance policy, program rules, wisconsin law, federal law, and court decisions establish your rights. 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. It is a contract between the policyholder and the insurance company. Life, accident and health producer indiana examination content outline 160 questions total time limit 2 hours 40 minutes revised 7102015 i. Like auto insurance covers your car if you get into an accident, health insurance covers you if you get sick or injured. 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. Health insurance basics what is the role of health insurance. But when it happens to you or your family, it can cost a lot of money to get care. Fundamentals of employee benefit programs, fourth addition. Hmos, ppos and pos plans are all types of managed care. The policyholder agrees to pay the premium and the insurance company agrees to pay losses as defined in the policy.
It protects you and your family from financial losses in the same way that home or car insurance does. The health insurance basics onehour online elearning course helps professionals that counsel, or assist, health care consumers. There are both private and public health insurance plans, with different plans offering different benefits. 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. You may have to pay a deductible each plan year before your insurance company starts to pay for your care. 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. For new cars, maintenance costs are quite minimal, unless you have a lemon and have to waste all your time going to. 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. Health insurance can protect you from these high costs. Benefits of health insurance blue cross and blue shield. Learn basics of health insurance with free interactive flashcards. Explain the basics of health insurance and how it works.
Congressional research service 1 introduction congress has seen a renewed interest in questions related to the market for private health insurance since the passage of the patient protection and. To cope with the potentially high costs of medical care, insurance policies provide some financial protection. To avoid the penalty for not having basic health insurance, you must be enrolled in a plan that qualifies as minimum essential coverage. Premium copayment coinsurance deductible outofpocket maximum health insurance plans may have different rules about how these key terms are applied, for example. Health insurance policy is being purchased by families and individuals who can afford to pay the medical bills. Feeforservice indemnity plan obtained by individuals on their own, or through groups, such as employers or associations. We all need to make a conscious effort to change our lifestyle, but we also need to stay protected with a. Different health insurance policies can offer different benefits, and some can limit which doctors, hospitals, or other providers you can use. Health insurance basics aegon life insurance company. 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.
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. A flat dollar amount you must pay out of your own pocket before your. Auto insurance provides property, liability and medical coverage. There is power in numbers, especially when it comes to finding affordable health insurance. Health insurance involves three kinds of costs you might have to pay 1. Health insurance is a way to manage the cost of health care. A wise person once said that your family is just one serious illness away from bankruptcy. 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. 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 is a contract between you and your health insurer to cover your medical expenses. The purchase price andor the car payments are just the most obvious of costs. The medical costs are split between the insurance company and the subscriber. Simplyinsured has all the resources you need to get you up to speed. Learn about the fundamentals of individual and family health insurance.
Basic health insurance coverage is what the affordable care act calls minimum essential coverage mec or qualifying health coverage. A health savings account is an individual savings account that. Medicare and medicaid basics mln booklet page 4 of 10 icn 909330 july 2018 beneficiaries medicare health insurance for. If you have health insurance coverage through a privatesector employer, you can. Introduce the lesson by showing the students 10 things they should know about health insurance i. Review the following questions to answer your basic health insurance questions and view informational videos. There are two main types of health insurance coverage. The legislation has greatly reduced the number of those without health insurance and, for some, has made coverage more accessible. Everybody who has health insurance pays a premium, but the size of the premium varies. Why is it important to know about health insurance. Many individuals with insurance are covered under an employerbased plan options offered and partially funded by their employer. No single plan will cover all costs associated with medical care. General insurance comprises of insurance of property against fire, burglary etc, personal insurance such as accident and health insurance, and. A trip to the hospital can be much more costly than you might expect.
Health insurance premiums and deductibles are up again this year. Generally offer the freedom to choose your own healthcare providers including specialists and hospitals. The basics procedurelecture outline 1 guide students through the power point presentation link a. If you buy health insurance, it can easily cost you less money than going to the hospital without it. Before you can choose the right health plan, you need to understand the basics of health insurance. Shopping for insurance can be confusing, but the affordable care act aca makes it easier to understand. One of the key decisions in deciding what car to buy is assessing how much all the other costs are that come with ownership. 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. Insurance is a form of risk management in which the insured transfers the cost of. Moreover, we need to force the healthy to get health insurance or let insurer charge di erently for the sick from the healthy.
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