Barbara O’Neill, Ph.D., CFP®Financial Resource Management Specialist

Rutgers Cooperative Extensiononeill@aesop.rutgers.edu

How Health Insurance Works: A Curriculum for High School Students

Where I Work

NJ Department of Education (NJ DoE) Grant Funding:

Guaranteed by State Law!http://sebsnjaesnews.rutgers.edu/2014/05/rutgers-designated-new-jersey-financial-education-provider/

Increased Annual Funding Source Since 2014

Based on credit union profits from holding public funds and administered by the NJ DoE

Rutgers Cooperative Extension receives money annually and then we figure out how to spend it

NJ DoE Funding Deliverables

• Financial Education Boot Camps

• Financial Education Teacher Exchanges

• Webinars in cooperation with NJCFE

• Lesson Plans (aligned with state standards)

Lesson Plans to Date • Risks and Benefits of Entrepreneurship (85k PDF)• Compound Interest: Your Best Friend or Worst Enemy (106k PDF)• Know the Score: Credit Score Modeling and Impacts (360k PDF)• The Impact of Inflation (128k PDF)• Monetary Transaction Tools (572k PDF)• Civic Financial Responsibility (511k PDF)• Insuring and Protecting Property Insurance (112k PDF)• Comparing Insurance How Health Insurance Works (973k PDF)• Values, Goals, and Financial Decisions (252k PDF)• Spending Plan/Budget: Your Financial Road Map (112k PDF)• Interest: The Cost of Borrowing Money (126k PDF)

Uniform Format Using a Lesson Plan Template

• Lesson description• Introduction (Background

for the Instructor)• Objectives• New Jersey Personal

Financial Literacy Standard• Time Required• Materials• Procedure (5 Learning

Activities)

• Closure• Glossary• Learning Extensions• Assessment• References and Resources• Activity Handouts• Back cover (Author,

Publication Date, Authorizing Legislation)

Health Insurance Lesson• How Health Insurance Works:

http://njaes.rutgers.edu/money/pdfs/DoE-Lesson-Plan-8-Comparing-Insurance-How-Health-Insurance-Works.pdf

• 20 page lesson plan

• Downloadable free of charge

• Supports NJ Content Standard 9.1.12.G3:

Compare the cost of various types of insurance for the same product or service, given different liability limits and risk factors

Lesson Background Content• Basic health insurance terminology

• High deductible health care (HDHC) plans

• “Rule of Three” comparisons

• ACA “metal tiers”

• Trade-off of premium vs. out-of-pocket costs

Students Will be Able to… • Explain common health insurance terms

• Complete math problems that apply health insurance terms

• Compare costs and features of health insurance plans

• Explain what can happen when people lack health insurance

• Explain the four ACA “metal tiers” of coverage

• Demonstrate understanding of insurance topics via completion of learning activities

IntroductionWhat Do I Already Know About Health Insurance? activity

• What personal experiences have you had as a health insurance consumer?

• What personal observations have you had about receiving health care services?

• What have you heard or read about health insurance?

• What television shows, movies, or advertisements relate to the topic of health insurance?

• What questions do you have about health insurance?

Activity #1• Two short Humana whiteboard-style videos• Ten debriefing questions

YouTube Video (2:13) How Does Health Insurance Work?: https://www.youtube.com/watch?v=M1yzSOxxAjk

YouTube Video (2:38): Ho do Deductibles and Copays Work?: https://www.youtube.com/watch?v=kT3H9pBP8fg

Activity #2 Health insurance math activityLet's say your health insurance plan has the following features: • Annual Deductible: $500 • Coinsurance: 80/20 (you pay the 20%; insurance pays 80%) • Out-of-Pocket Maximum: $5,000

Now, let's say that you go to the hospital and incur $7,500 worth of medical expenses. How much do you have to pay out of pocket?

What would be your out-of-pocket cost for $20,000 of annual medical expenses?

What would be your out-of-pocket cost for $40,000 of annual medical expenses?

Activity #3• Bronze, Silver, Gold, or Platinum: How to Choose the Right

Level of Coverage (Consumers Union): http://consumersunion.org/research/bronze-silver-gold-or-platinum-how-to-choose-the-right-level-of-coverage-in-covered-california/

• Health Insurance Cost Comparison Worksheet activity handout

• Ten debriefing questions

• One math application question

– Anticipated annual expenses: Bronze plan vs. Gold plan

Activity #4Word Search Puzzle: 12 Key Health Insurance Terms

Activity #5

Learning Extensions• Additional videos and web quests

• Guest speakers (e.g., insurance agent, ACA navigator)

• Kaiser Foundation insurance quiz: http://kff.org/quiz/health-insurance-quiz/

• Learning activities from five other curricula

• “Is it Fair?” debate about ACA health insurance mandate

Glossary• Exclusions

• Insurance Agent

• Insured

• Insurer

• Metal Tiers

• Policyholder

• Policy Limit

• Preventative Care

• Primary Care Physician

• Risk

• Specialist

…. PLUS the 12 words in the Activity #4 word search

Assessment• Five multiple choice questions

– Example: The term used to describe the amount that a policyholder must pay before a health insurance policy pays any benefits is a. Copayment b. Coinsurance c. Deductible d. Out-of-Pocket Maximum

• Five true-false questions– Example:

Bronze plans in the health insurance Marketplace have the lowest premium cost and highest out-of-pocket cost.

Open Invitation:Please Use the Curriculum

• Use it to train high school personal finance teachers

• Adapt it for college students and adult audiences

• Use all of it or pieces of it

• Expand it with additional materials

• Stay in touch: boneill@njaes.rutgers.edu