Health Insurance - Deductible, Copay, Coinsurance & OOPM

In this activity, students will explore key health insurance concepts through a real-world scenario. They'll be guided through an example of a health insurance policy and calculate costs for different medical events over a year. The activity covers critical terminologies used in health insurance - including premium, deductible, copay, coinsurance, and out-of-pocket maximum (OOPM), ensuring students understand how costs are distributed between the individual and the insurance provider.

Activity Structure:

• Students are given a scenario with details of a health insurance policy, including the premium, deductible, copay, coinsurance, and OOPM.
• They are then presented with a series of medical events (e.g., doctor visits, hospital stays) that occur throughout the year.
• For each event, students will calculate:
• Deductible paid: How much of the deductible is applied.
• Copay: The fixed amount paid for the event.
• Coinsurance: The percentage of costs paid after the deductible.
• Insurance coverage: The amount the insurance company pays.
• Out-of-pocket tracking: How close they are to the OOPM.

This activity provides a practical, hands-on way to teach students how insurance policies work, preparing them for informed financial decision-making.