Car/Auto Insurance Explained!

What fundamental concept does health insurance rely on?

• Economy of scale

• Government support

• Individual savings

• Private investments

What happens when you sign up for health insurance?

• You pay for individual coverage

• You join a group to share healthcare costs

• You receive government aid

• You are covered only for accidents

In Gary's example, what initially caused his need for medical attention?

• A skiing accident

• A workplace injury

• A home incident

• A car accident

How much could the birth of Gary's twins potentially cost without insurance?

• No more than $10,000

• Less than $1,000

• Up to $100,000

• Exactly $50,000

What is the role of healthy individuals in a health insurance group?

• They do not contribute to the pool

• They only cover their own costs

• They pay less into the pool

• They help cover costs when others are sick

What does Gary's insurer bet on with the group's pooled money?

• That no one will get sick

• That the money will cover all health expenditures

• That only Gary will use the funds

• That they will profit without payouts

What are Gary's financial responsibilities after his accident with health insurance?

• Nothing at all

• Annual premiums only

• Only his co-pay and deductible

• Paying the full cost

How does health insurance minimize financial risk?

• By increasing premiums

• By spreading costs across many people

• By limiting coverage to minor injuries

• By covering all medical expenses

What is a key benefit of being part of a health insurance group?

• Access to government facilities

• Reduced personal financial risk

• Lifetime coverage

• Automatic health improvement

What does the health insurance coverage ensure for its members?

• Private healthcare access

• Investment returns on premiums

• Coverage for all personal accidents

• Mutual aid when medical needs arise