Personal Finance Chapter 12

a type of
insurance offered by private insurance companies or the government that covers health care expenses incurred by policyholders for necessary
medical care

•About 1 in 5 workers is uninsured

Health insurance that can be purchased from private insurance companies to provide coverage for health care expenses

Insurance that covers the cost of many hospital facility and service fees

Insurance that covers the cost of some surgeries

Insurance that covers the cost of many nonsurgical physician expense fees

Insurance used as a backup to basic health insurance, covering major medical expenses that are beyond the scope of the basic policy

•Many employers offer health insurance as part of benefit package •Cost usually shared between employee
and employerSelf-employed individuals must pay entire cost of their health insurance

Health insurance that reimburses individuals for part or all of the expenses they incur from health care providers; individuals are free to decide whether to seek care from a primary care physician or a specialist

A health insurance policy under which individuals receive services from specific doctors or hospitals that are part of the plan

A health insurance plan that covers health care services approved by doctors; a primary care physician provided general health services and refers patients to a specialist as necessary

A health insurance plan that allows individuals to select a health care provider and covers most of the fees for services

An arrangement
in which the preferred provider organization agrees
to pay a specific percentage of the health care
provider’s charges

An arrangement in which the preferred provider organization pays the provider a specific sum per day a patient is hospitalized

Employers may offer individual or
family coverage