Hospital Expenses - The Need for Health Insurance

In this engaging worksheet, students will analyze the average hospital expenses for various treatments and the average cost of hospital stays in different states. They will then simulate health events over five years in the life of Mr. John, who has a health insurance. This activity helps students understand the financial benefits of health insurance by comparing the costs incurred with and without insurance.

Activities:

1. Health Care Cost Analysis: Students will analyze data tables showing the average expenses for treatments such as wound preparation, normal pregnancy, angioplasty, etc. and the average cost of hospital stays in different states. They will also answer questions based on the given data.
2. Simulation: The worksheet will introduce Mr. John, who has a health insurance plan with a monthly premium of $500. Over a five-year period, students will go through a series of health events that Mr. John experiences, noting the treatment costs for each event.
3. Cost Calculation: For each event, students will calculate the total costs incurred by Mr. John, including insurance premiums, deductibles, and out-of-pocket expenses.Students will compare the total costs incurred by Mr. John with insurance versus the total actual medical expenses without insurance.
4. Benefit Evaluation: Guided questions will help students reflect on the financial benefits of having health insurance, understanding how it provides financial protection against high medical costs.

This worksheet is designed to provide students with a comprehensive understanding of health insurance, enhancing their financial literacy and preparing them for real-world financial planning.