group health insurance 10-4-2011. do now… emily participates in her companys group medical...

GROUP HEALTH INSURANCE

10-4-2011

DO NOW…

Emily participates in her company’s group medical insurance plan. The annual cost of Emily’s plan is $2,500 per year. If the company pays 65% of the annual cost, how much is deducted from her biweekly paycheck to cover her portion?

Computing Group Insurance Deductions

1. Find the percent paid by Emily:100% - 65% = 35%

2. Find the annual amount paid by Emily:$2,500 X 35% = $2,500 X .35 = $875

3. Find the deduction per pay period:$875 26 = $33.65 deduction per pay

period

Group Health Insurance

• Health Insurance: Covers the cost of health care• An individual can purchase health insurance to

provide protection against the costs of various types of illnesses or accidents.

• Most employers provide some type of health insurance coverage• A company may receive cheaper rates than an

individual because it can provide coverage for its workers under group plans available through many insurance companies

• Some companies pay a portion of the premiums, some pay all of the premiums, while others don’t pay any of the premiums

• Premium: payment to the insurance company for the purchase on an insurance policy

Computing Group Health Insurance Deductions

1. Find the percent paid by the employee

2. Find the annual amount paid by the employee

3. Deduction per Pay Period =Total Annual Amount Paid by Employee

Number of Pay Periods per Year

Let’s Practice…

Jack participates in his company’s medical insurance plan. The plan has an annual cost of $3,975. The company pays 70%. If Jack is paid biweekly, what is his insurance cost per paycheck?

1. Find the percent paid by Jack:

100% - 70% = 30%2. Find the annual amount paid by Jack:

$3,975 X 30% = $3,975 X .30 = $1192.50

3. Find the deduction per pay period:

$1192.50 26 =

Let’s Practice…

$45.87 deduction per pay period

One More Time…

Melissa earns $1,970 per month. Her family insurance plan costs $4,450 per year. Her employer pays 66% of the cost. If this is her only deduction, how much is her monthly paycheck after the medical insurance deduction?

1. Find the percent paid by Melissa:

100% - 66% = 34%2. Find the annual amount paid by

Melissa:

$4,450 X 34% = $4,450 X .34 = $405.45

3. Find the deduction per pay period:

$405.45 12 =

One More Time…

$33.79 deduction per pay period

$1,970 - $33.79 = $1936.21

4. Find the monthly paycheck after the insurance deduction :

1. Find the percent paid by Melissa:

100% - 66% = 34%2. Find the annual amount paid by

Melissa:

$4,450 X 34% = $4,450 X .34 = $1513.00

3. Find the deduction per pay period:

$1513.00 12 =

One More Time…

$126.08 per pay period

$1,970 - $126.08 = $1843.92

4. Find the monthly paycheck after the insurance deduction :

Your Turn…•Get your workbooks

•Turn to Sections 2-5 on Page 10

•Complete questions 1-7