Terms to understand
1. Beneficiary- A beneficiary is person/group that receives profits or benefits, in other terms, it is a person who will be the recipient of funds under an insurance policy or trust. 2. Premium- This deals with insurance, and it is the amount of money paid/ be paid by the policyholder for coverage under a specific contract, such as Medicaid and other health insurance plans. 3. medically necessary- medical treatment that is deemed necessary under a certain practice, this is a term that is often used by insurers 4. deductibles- A deductible is the amount of money in which the person who is insured by a particular insurance company is reliable for before the insurance company makes a payment. This usually is in times of injury, and things of that nature. 5. copayments/coinsurance- This is the amount of money in which you pay a doctor’s office based on the coverage of your health insurance. This is also a contributory payment by someone, (employer) towards the payment of health insurance 6. asymmetric information- This is when one party has better/ reliable information than the other. This therefor causes and imbalance in power. An example of course is Republicans and Democrats, there will never be a balance on their ideas. 7. pre-existing condition- this is a medical condition that started before a person’s health insurance went into effect. Questions to answer
1. Purchasing insurance as part of a large group is most economical. Why? a. Group coverage is extremely popular in society today. Now the people who are insured under the group/employer aren’t apart of the organization for the insurance, rather other reasons, such as working. The employers usually purchase the coverage under a wholesale price, therefor resulting in a lower cost for the employees. Once the individual decides to leave the particular group/ job, the coverage will in return be terminated. This process allows the...
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