Chapter 11: Planning for Health Care Expenses Learning Objectives: 1. Explain how the Affordable Care Act works and how consumers shop and pay for health insurance coverage. 2. Distinguish among the types of health care plans. 3. Describe the typical benefits and limits of health care plans. 4. Explain the fundamentals of planning for long-term custodial care. 5. Develop a plan to protect your income when you cannot work due to disability. 6. Summarize the benefits of preparing advance medical directive documents. Selected problems from textbook: 1. Health Care Coverage Amounts. Michael Howitt of Berkley, Michigan, recently had his gallbladder removed. His total bill for this surgery, which was his only health care expense for the year, came to $13,890. His health insurance plan has a $500 annual deductible and an 80/20 coinsurance provision. The cap on Michael's coinsurance share is $2,000. (a) How much of the bill will Michael pay? Health care expense Deductible (-) (-) 20% coinsurance lif more than $2,000, enter $2,000 here) Paid by Michael: (coinsurance or cap, plus deductible (b) How much of the bill will be paid by Michael's insurance? Health care expense Paid by Michael: (-) Paid by insurance provider: (-) Chapter 11: Planning for Health Care Expenses Learning Objectives: 1. Explain how the Affordable Care Act works and how consumers shop and pay for health insurance coverage. 2. Distinguish among the types of health care plans. 3. Describe the typical benefits and limits of health care plans. 4. Explain the fundamentals of planning for long-term custodial care. 5. Develop a plan to protect your income when you cannot work due to disability. 6. Summarize the benefits of preparing advance medical directive documents. Selected problems from textbook: 1. Health Care Coverage Amounts. Michael Howitt of Berkley, Michigan, recently had his gallbladder removed. His total bill for this surgery, which was his only health care expense for the year, came to $13,890. His health insurance plan has a $500 annual deductible and an 80/20 coinsurance provision. The cap on Michael's coinsurance share is $2,000. (a) How much of the bill will Michael pay? Health care expense Deductible (-) (-) 20% coinsurance lif more than $2,000, enter $2,000 here) Paid by Michael: (coinsurance or cap, plus deductible (b) How much of the bill will be paid by Michael's insurance? Health care expense Paid by Michael: (-) Paid by insurance provider: (-)