3143TOPIC 8 Insuring your health.doc

3143TOPIC 8 Insuring your health.doc - TOPIC 8 Insuring...

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TOPIC 8: Insuring Your Health 1. Importance of Health Insurance Health insurance protects your financial future against potential economic loss due to illness or injury. With the high cost of health care today, a serious illness could wipe out a family's savings, and a disability could severely lower their standard of living. The costs of health care have been increasing at a rate that exceeds the rise in the consumer price index (CPI). Probably the chief cause of rapidly rising health care costs stems from the increased demand for health care services resulting from the aging population. Review of the most important health insurance policy provisions as they relate to terms of payment and terms of coverage. The importance of disability insurance to replace lost wages during periods of extended illness. Importance of Health Insurance Protect against economic loss due to serious accident or illness. Protect against raising cost of health care 1
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WHY DOES HEALTH CARE COST SO MUCH? Use of sophisticated, expensive technologies Duplication of tests and technologies Competition for medical staff. Increases in the variety and frequency of treatments Increasing number and longevity of elderly people Regulations that result in cost shifting rather than cost reduction Increasing number of accidents, crimes that require emergency services Labor intensiveness, rapid earnings growth for health care professionals Innovative treatments for AIDS, cancer Built in inflation in health care delivery system Malpractice Insurance Aging baby boomers WHAT CAN YOU DO TO REDUCE PERSONAL HEALTH CARE COSTS? Stay well - focus on prevention Eat a balanced diet, keep your weight under control Avoid smoking, don’t drink to excess Get enough rest, relaxation, and exercise 2
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Drive carefully, watch out for accident and fire hazards in the home 2. Group Health Care Insurance Consists of health care contracts that are written between a group (usually an employer, union, credit union, college or university, or other organization) and an insurance company. The coverage of each specific plan is subject to negotiation between the group and the insurer. With the exception of disability coverage, most health care coverage is available through group health insurance plans. In most group plans the employer will pay all or part of the premiums. 3. Individual Health Insurance Coverage provides protection directly to the policyholders and/or their families. Individuals with individual health insurance coverage can tailor the coverage to their needs. 4. Workers’ Compensation Insurance (SOCSO) Coverage typically includes: Medical and rehabilitation expenses 3
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Disability Income Lump sum payment for death or dismemberment Applicable during working hours 5. Health Insurance Decisions Evaluate your healthcare cost risk considering - Medical care and rehabilitation expenses -
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