0922 Health Insurance

Concept of insurance

insuring against risk among groups of people (aka risk pools)

Protects against unpredictable, unexpected, and uncontrollable problems that come up in peoples lives

Members of a risk pool pay a monthly fee called a premium

76% of Americans could not define what an insurance premium is

private health insurance

coverage is provided through an employer or purchased directly by individuals and families

Employer sponsored health insurance

employer contribution

Worker contribution

largest form of coverage in America

employer health plans

Medicaid

Medicare

Uninsured

Individual

Other public programs

Deductible

amount you pay for covered health care services before your insurance plan starts to pay

With a $2000 deductible, for example you pay the first $2000 of covered services yourselfMo

moral hazard

taking on extra risk that affects another party when you feel like you are shielded from the consequences of said risk