Slide MGT312 Slide07

Managing Health
Expenses
Chapter 11

Financial Burdens of Illness or
Injury

• Direct health care costs.

• Rehabilitative and custodial care costs.
• Lost Income.

Sources of Protection from
Direct Health Care Costs

• Health Maintenance Organizations (wide
array health insurance)
• Traditional health insurance
• Consumer-driven health care (high cost
insurance)

Characteristics of Health
Insurance

• Deductibles (initial loss).

• Copayments (50-50 payment).
• Coinsurance (80-20 payment).
• Policy limits (maximum reimbursement).
• Coordination of benefits (no insurance
payment above loss).