Health Insurance Premiums pp. 372-374 11-1 SECTION.
-
Upload
arlene-hall -
Category
Documents
-
view
215 -
download
2
Transcript of Health Insurance Premiums pp. 372-374 11-1 SECTION.
Health Insurance Premiums pp. 372-374
11-1SECTIONSECTION
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
2
SECTION
Copyright © Glencoe/McGraw-Hill
11-1
Section ObjectiveSection ObjectiveCompute:
• health insurance premiums
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
3
SECTION
Copyright © Glencoe/McGraw-Hill
11-1
health insurance (p. 372)
Protection against the costs of medical expenses.
preferred provider organization (PPO) (p. 372)
A group of selected health care providers who offer comprehensive services at preset reimbursement levels.
Key Words to KnowKey Words to Know
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
4
SECTION
Copyright © Glencoe/McGraw-Hill
11-1
health maintenance organization (HMO) (p. 372)
A group program that provides health care at its own center with its own doctors for a fixed fee per month.
Key Words to KnowKey Words to Know
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
5
SECTION
Copyright © Glencoe/McGraw-Hill
11-1
Employee’s Percent = 100% × Employer’s Percent
Formula 1Formula 1
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
6
SECTION
Copyright © Glencoe/McGraw-Hill
11-1
Employee’s Contribution =Total Premium × Employee’s Percent
Formula 2Formula 2
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
7
SECTION
Copyright © Glencoe/McGraw-Hill
11-1
Insuring Your Life p. 372Insuring Your Life p. 372
What’s the purpose of an insurance premium?
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
8
SECTION
Copyright © Glencoe/McGraw-Hill
11-1
Sean Derricotte has a family membership in a group medical insurance program. The annual premium is $6,180. Derricotte’s employer pays 80 percent of the total cost. His contribution is deducted monthly from his paycheck.
What is Derricotte’s annual contribution?
What is his monthly deduction?
Example 1Example 1
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
9
SECTION
Copyright © Glencoe/McGraw-Hill
11-1
Find the employee’s percent.
100% – 80% = 20%
Example 1 Answer: Example 1 Answer: Step 1Step 1
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
10
SECTION
Copyright © Glencoe/McGraw-Hill
11-1
Find the employee’s annual contribution.
Total Premium × Employee’s Percent
$6,180.00 × 20% = $1,236.00
Example 1 Answer: Example 1 Answer: Step 2Step 2
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
11
SECTION
Copyright © Glencoe/McGraw-Hill
11-1
Find the employee’s monthly deduction.
Employee’s Contribution ÷ 12
$1,236.00 ÷ 12 = $103.00
Example 1 Answer: Example 1 Answer: Step 3Step 3
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
12
SECTION
Copyright © Glencoe/McGraw-Hill
11-1
Paul Esnerado has a family PPO group medical insurance plan. The total cost is $13,900.
His employer pays 85 percent of the total cost.
He also has the optional annual dental, which costs $950, and the optional vision care, which costs $315.
Practice 1Practice 1
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
13
SECTION
Copyright © Glencoe/McGraw-Hill
11-1
His employer pays 50 percent of dental and vision costs.
How much is deducted each week from his paycheck for medical, dental, and vision insurance combined?
Practice 1 (cont.)Practice 1 (cont.)
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
14
SECTION
Copyright © Glencoe/McGraw-Hill
11-1
$52.26
Practice 1 AnswerPractice 1 Answer
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
15
SECTION
Copyright © Glencoe/McGraw-Hill
11-1
Tim Landau is a self-employed custom furniture maker. He pays 100 percent of his family HMO annual premium of $10,200. He also has a dental plan that costs $700, and an annual vision plan that costs $260. The premiums are paid quarterly.
How much does he pay quarterly for insurance?
Practice 2Practice 2
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
16
SECTION
Copyright © Glencoe/McGraw-Hill
11-1
$2,790
Practice 2 AnswerPractice 2 Answer
Health Insurance Premiums11-1END OF SECTIONEND OF SECTION