topic 2 healthcare

professor penny

A deductible is sometimes called first-dollar because it’s the amount that must be paid by the insured before the insurance plan pays any expenses.

Learning goals

By the end of this topic, you should be able to:

Compare the types of private health care plans
Describe the contents of health care plans
List the types of government health plans
Describe federal regulations in health care

section outline

Topic 2 Healthcare

2.1 Background on Health Insurance

2.2 Private Health Insurance

2.3 Contents of Health Care Plans

2.4 Government Health Care Plans

2.5 Health Care Insurance Regulations

Content Videos

The Gus A. Stavros Center for the Advancement of Free Enterprise and Economic Education at Florida State University is pleased to offer these resources. They were created by Teaching Professor Joe Calhoun.

The captions were created by a computer program so sometimes they may be inaccurate or contain spelling or grammatical errors.

You may alternate the views by clicking on the white icon on the top-right corner of the screen.

The videos should not be downloaded or distributed beyond this site.

First part

Second part

Third part

key point

The insured person always pays the deductible first. Coinsurance and copays mean the insured and the insurance plan both pay a portion of the bill.

Certified peer mentors

Mentors give presentations to groups about our topics. They also assist other students in personal finance matters and answer questions during individual meetings. To schedule a presentation or an appointment to discuss your situation email coss-financialpeermentor@fsu.edu or visit the Stavros Center financial wellness page.

a topical story

Ethan collapsed onto his bed, exhausted. He’d just finished his second interview of the day, fourth of the week. The prospect of graduating was becoming less and less exciting as he began to realize what all went into trying to be successful post-graduation. Just as Ethan began to doze off, he heard a knock at his door.

“Crap,” he exclaimed, remembering about his plans to chill and play video games with Jamal and Diego. He made his way over to the front door, letting in his two friends that were being entirely too loud for his liking.

“Hey!” they exclaimed, barging through Ethan’s doorway.

“Hey guys,” Ethan managed in a groggy voice.

“Someone sounds sleepy. Oh! You had those interviews today, right? How did it go?” Jamal asked.

“Oh fine,” Ethan started. “The interview itself went well, but they started talking benefits and I feel like it all went straight over my head. I asked about health insurance, with my awful eyesight and such, and they were talking about so many plans, it’s all really confusing. So much for post-grad life being easy.”

“It can’t be that bad. What did they say?” Diego asked.

“Oh, I promise it is. There are two kinds of plans if I understood right. HMO and PPO, I think? HMO is cheaper, but I don’t think it’ll cover my optometrist. PPO is more expensive, but I can get my visits covered which would be a lot better than paying out of pocket. I have to see so many specialists every now and then that I think the PPO plan would be worth it. But I do need to see if the policies even cover specialists that are in my area. Like I said, kinda confusing.” Ethan said

“Glad I’m not you!” Diego laughed, hoping to cheer Ethan up a bit. “Then again, I eat my carrots, so I could manage the HMO plan or whatever it was called. Maybe you should try some, four eyes,” Diego teased.

“Ha-ha, very funny. Can we just get to playing? I need to turn my brain off for a sec. Let me change out of this awful suit, I’ll be right back.” Ethan said, walking down the hall to his room.

“Okay, we’ll get the carrots and hummus ready!” Jamal yelled from the kitchen.

(Story created by Jasmine George, Ana Siqueira, Courtney Swanson and Alex Thompson)

related books

These books have a chapter directly related to this topic. Please read them for more details.

Chapter 7: Ramsey, Dave. Dave Ramsey's Complete Guide To Money. Ramsey Press, 2012.

Chapter 9: Hogan, Chris. Retire Inspired: It's Not an Age, It's a Financial Number. Ramsey Press, 2016.

Principles 72 & 73: Siegel, Cary. Why Didn't They Teach Me This in School?: 99 Personal Money Management Principles to Live By. CreateSpace Publishing, 2013.

Chapter 4: Orman, Suze. The Road to Wealth. Penguin Publishing Group, 2010.

additional resources

https://www.policygenius.com/health-insurance/learn/health-insurance-basics-and-guide

https://www.nihp.org/4-types-of-healthcare-insurance-and-how-it-works/

https://www.thebalance.com/what-is-the-average-health-insurance-premium-4586358

https://www.youtube.com/watch?v=DBTmNm8D-84

https://www.youtube.com/watch?v=sBxLmKBqa60

https://www.annuity.org/financial-literacy/

other books

Malkiel, Burton. A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing. W. W. Norton & Company, 2020.

Wood, William. Getting a Grip on Your Money: A Plain & Simple Christian Guide to Managing Personal Finances, Eliminating Debt, Spending, Saving & Giving, Investing for the Future. Intervarsity Press, 2002.

Bach, David. Smart Women Finish Rich, Expanded and Updated. Currency, 2018.

Bogle, John. The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns. Wiley, 2017.

Clason, George. The Richest man in Babylon. Dauphin Publications Inc., 2018.

Hill, Napoleon; Arthur R. Pell. Think and Grow Rich: The Landmark Bestseller Now Revised and Updated for the 21st Century. TarcherPerigee, 2005.

Lynch, Peter; John Rothchild. Beating the street. Simon & Schuster, 1994.

Kobliner, Beth. Get a Financial Life: Personal Finance in Your Twenties and Thirties. Simon & Schuster, 2017.

Orman, Suze. The 9 Steps to Financial Freedom: Practical and Spiritual Steps So You Can Stop Worrying. Currency, 2006.

Bach, David; John David Mann. The Latte Factor: Why You Don't Have to Be Rich to Live Rich. Atria Books, 2019.

Hogan, Chris. Everyday Millionaires: How Ordinary People Built Extraordinary Wealth―and How You Can Too. Ramsey Press, 2019.

important government sites

(Links to an external site.) (Links to an external site.)Federal Regulation:

The Internal Revenue Service is the nation's tax collection agency and administers the Internal Revenue Code enacted by Congress (Links to an external site.)

The Federal Trade Commission protects consumers and competition by preventing anticompetitive, deceptive, and unfair business practices (Links to an external site.)

(Links to an external site.)The CFPB is committed to providing consumers with up-to-date information and resources to protect and manage their finances (Links to an external site.)

Healthcare:

The mission of the U.S. Department of Health and Human Services (HHS) is to enhance the health and well-being of all Americans (Links to an external site.)

Medicare (Links to an external site.)

Medicaid (Links to an external site.)

Other:

Social Security Administration (Links to an external site.)

Department of Education (Links to an external site.)

State of Florida

ECO 3041

ECO 3041 Personal Finance is a 3 credit hour course offered in-person and online each fall and spring semester. The purpose of the course is to provide you with the specific content knowledge of personal finance and to give you opportunities to start using that knowledge to create good habits, make better financial choices, and live a more fulfilling life. It covers material for all 33 topics listed here. See Professor Calhoun's most recent syllabus here. ECO_3041_SP21.pdf

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To schedule a presentation or an appointment with a certified peer mentor to discuss your situation email coss-financialpeermentor@fsu.edu or visit the Stavros Center financial wellness page.