Day 32 (PF)


  2. WATCH Health Insurance 101: Types of Plans AND ANSWER THE QUESTIONS:


  4. Get register at course code: 5442ca1c


GOAL: Before you leave class today you will have the opportunity to test your knowledge on Healthcare.

  1. Open the Google Doc from last — finish it
  2. Go to Budget Challenge and review the UNIT MATERIAL for the HEALTHCARE unit
  3. Take the HEALTHCARE quiz–this will go in the tests portion of JMC–use the Unit Material to help you.

Pit Stop Summary: New employees make health care insurance decisions within the first week of employment. For an individual in their first job, the terminology alone can be daunting. The purpose of this Pit Stop is to provide students with general information about health care terminology, types of insurance plans available and how employer provided insurance works.

Terminology Tune Up

  1. Health Maintenance Organization (HMO): Medical insurance plan that requires a primary care physician as the gatekeeper to medical care.
  2. Preferred Provider Organization (PPO): Medical insurance plan that allows the insured to select their own doctor, with lower fees for in-network providers.
  3. Co-insurance: The % of a medical bill that is the responsibility of the insured.
  4. In-network: Refers to a health care provider that the insurance company contracts with to provide care at discounted prices.
  5. Out-of-network: Refers to health care providers that the insurance company does not contract with to provide care therefore costs are higher than an Innetwork provider

Navigation Tips: Health care is a complex topic. The following tips will help you navigate the world of health insurance.

  1. Health care insurance can be obtained through an employer.
  2. Health care insurance can be expensive.
  3. The two major health care plan types are HMO and PPO.
  4. Thoroughly review your certificate of coverage before purchasing an insurance plan.
  5. There is an appeal process for health insurance claims

Through the character in the Budget Challenge Road Test, students will experience a health care situation with employer provided health care insurance. The simulation scenario allows for practicing Navigation Tips #1, 2, & 3.

Navigation Tip #1: How employer provided insurance works.

  1. In the simulation, ProperLiving Widget Engineering & Design provides health insurance for its full-time employees as a benefit to employment.
  2. With an employer sponsored plan, the employee’s portion of the monthly premium is less than if he/she had to purchase insurance on their own.
  3. The employee’s portion of the monthly premium is deducted from the employee’s paycheck pre-tax.
  4. The health care insurance premium amount can be found in the Paycheck Calculator found at the bottom of the Student Home>Vendor Selections page.

Navigation Tip #2: HMO or PPO? What is the difference?

  1. An HMO requires the patient first contact their primary care physician (PCP) before receiving services from another physician or specialist.
  2. An HMO is more restrictive, but can be less expensive than a PPO.
  3. With a PPO, the patient can receive services from the physician or specialist of their choosing and no referral is required.
  4. If the insured received services from a physician or specialist in-network, the cost of care will be less expensive than receiving services from a physician or specialist that is out-of-network.

EXAMPLE: You break your ankle and need to see an orthopedic surgeon.

  • With an HMO, you first have to contact your PCP to get a referral that states the orthopedic surgeon has permission to provide services to you. Your PCP is managing your care.
  • With a PPO, you choose the orthopedic surgeon from a list of providers and if they are in-network, at a cost savings vs. an out-of-network provider

Did You Know? The average annual healthcare cost for a 25 year old is $3,370.

In this Test Drive, students will calculate the financial cost of a visit to a physician in a Peferred Provider Organization using in network and out-of network providers. Teachers will need to be prepared to discuss the terminology and concepts provided in this Pit Stop, as well as, be familiar with the cost advantages of using an in-network provider rather than an out-of network provider.

Pit Stop Summary: Students learn proactive strategies for safeguarding personal, financial and confidential information to prevent financial mishaps in the future

Terminology Tune-Up:

  1. Identity Theft –Fraudulently acquiring/using another person’s identifying information for financial gain.
  2. Malware – Software that is intended to damage or disable computers and computer systems.
  3. Phishing – Activity of defrauding an online account holder of financial information by posing as a legitimate company.
  4. Secure Sockets Layer [SSL] – The standard security technology for establishing an encrypted link between a web server and a browser.
  5. Dumpster Diving – Strategy used by identity thieves to retrieve  sensitive information about another that was discarded in the trash.

Navigation Tips:

  1. Establish strong passwords using recommended password strategies.
  2. Think before you click.
  3. Protect your identity. Do not share your SSN and full birthdate.

Navigation Tip #1: Establish strong passwords using recommended  strategies. Safeguard your Budget Challenge password and interact safely online. Recommended strategies include:

  1. Create a strong password: minimum of eight characters with at least one capital letter, one number and special character. Password should not contain user name, real name, company name or other easily discoverable information.
  2. Use mobile or online password protection software or keep passwords in a safe place at home.
  3. Use unique passwords for different accounts, using more difficult passwords for accounts with sensitive information like online banking or those that can affect your reputation like social media.

Navigation Tip #2: Think before you click It is important that all consumers take necessary precautions to prevent online fraud.

  1. Free Wi-Fi in public places is often not secure. Do not access financial information on unencrypted sites and avoid using mobile apps that require personal information.
  2. Be aware of Phishing/Spoofing emails attempting to obtain confidential information. It is highly unlikely financial institutions or government agencieswould request confidential information through an email or on the phone.
  3. Be wary of downloading software from unknown sources as these may contain viruses, malware or spyware. While playing Budget Challenge, students only receive emails from Budget Challenge authorized accounts. A list of these email address can be found on the Quick Tips file located at Student Home>How to Play.

Navigation Tip #3: Protect your identity. Do not share your SSN or full birthdate. Identity thieves need a combination of four pieces of information: name, address, SSN and birthdate. Protect your SSN and full birthdate to guard against identity theft as these are not easily found online.

Did You Know? A recent study from Kaplan has found that 31 percent of
college admission officers check social media to see if an applicant would
make a good fit at their educational institution.


  1. Open this file:
  2. Read and do the Turn by Turn Navigation as a class
  3. On the left side of the paper read the TAKE ACTION section
  4. At the bottom read the Rest Area Follow Up questions. Respond to them in the Word Online file for this class.
  5. At the right read the Now What? box.

Leave a Reply

Your email address will not be published. Required fields are marked *