Personal Finance Chapter 12

Private health insurance is not provided by the government, limited to the elderly population, or restricted to covering only emergency room visits. It is purchased from private insurance companies to cover health care expenses.

Hospitalization insurance specifically focuses on covering the costs associated with hospital stays and services, not other types of medical or non-medical expenses.

Surgical expense insurance specifically covers the cost of certain surgeries, not other types of medical or health-related expenses.

Physician expense coverage specifically focuses on covering the fees associated with nonsurgical physician visits, not other types of healthcare expenses.

An indemnity plan is a type of health insurance that provides individuals with the flexibility to choose their healthcare providers and covers part or all of the expenses incurred for medical services.

A managed health care plan refers to a specific type of health insurance policy where individuals are limited to receiving services from a specific network of doctors and hospitals.

A Health Maintenance Organization (HMO) is a type of health insurance plan that focuses on providing healthcare services through approved doctors and a primary care physician who manages general health needs and directs patients to specialists when necessary.

Preferred provider organization (PPO) is a type of health insurance plan that offers more flexibility in choosing healthcare providers compared to other plans like HMOs. It typically covers a higher percentage of costs when individuals seek care from doctors and hospitals within the PPO network.

A per diem rate arrangement involves a specific daily payment to the healthcare provider for each day a patient is hospitalized, which is typically paid by the preferred provider organization.

Premiums for private health care insurance can vary depending on who is purchasing the coverage. Employers often offer individual or family coverage as part of employment benefits. Premiums are not solely set by insurance companies for profit, nor are they used only for administrative costs. Self-employed individuals are not required to purchase their own coverage, but must seek insurance independently.

Private health insurance plans differ in coverage options, cost structures, and network of healthcare providers. Individuals must carefully compare and choose a plan that best fits their needs and circumstances.

A flexible spending account is specifically established by the employer for medical expenses using pretax income with the caveat that funds do not roll over into the next year.

Medigap insurance is specifically designed to help cover medical costs not covered by Medicare, and is offered by private insurance companies. It is not a government-funded program for low-income individuals, dental insurance, or employer-provided health coverage.

A health savings account (HSA) specifically allows individuals to save money on a tax-advantaged basis for medical expenses.

Medicaid is a federal program that aims to provide health care to specific demographics in need, such as the elderly, disabled, and needy families with dependent children. It is not managed on a state level with income restrictions, nor is it exclusive to seniors over 65 or only limited to covering prescription medication costs.