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# GROUP HEALTH INSURANCE

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?.

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## GROUP HEALTH INSURANCE

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1. GROUP HEALTH INSURANCE 10-4-2011

2. 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?

3. Computing Group Insurance Deductions • Find the percent paid by Emily: 100% - 65% = 35% • Find the annual amount paid by Emily: \$2,500 X 35% = \$2,500 X .35 = \$875 • Find the deduction per pay period: \$875 26 = \$33.65 deduction per pay period

4. 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

5. Computing Group Health Insurance Deductions • Find the percent paid by the employee • Find the annual amount paid by the employee Deduction per Pay Period = Total Annual Amount Paid by Employee Number of Pay Periods per Year

6. 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?

7. Let’s Practice… • Find the percent paid by Jack: 100% - 70% = 30% • Find the annual amount paid by Jack: \$3,975 X 30% = \$3,975 X .30 = \$1192.50 • Find the deduction per pay period: \$1192.50 26 = \$45.87 deduction per pay period

8. 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?

9. One More Time… • Find the percent paid by Melissa: 100% - 66% = 34% • Find the annual amount paid by Melissa: \$4,450 X 34% = \$4,450 X .34 = \$405.45 • Find the deduction per pay period: \$405.45 12 = \$33.79 deduction per pay period Find the monthly paycheck after the insurance deduction : \$1,970 - \$33.79 = \$1936.21

10. One More Time… • Find the percent paid by Melissa: 100% - 66% = 34% • Find the annual amount paid by Melissa: \$4,450 X 34% = \$4,450 X .34 = \$1513.00 • Find the deduction per pay period: \$1513.00 12 = \$126.08 per pay period Find the monthly paycheck after the insurance deduction : \$1,970 - \$126.08 = \$1843.92

11. Your Turn… • Get your workbooks • Turn to Sections 2-5 on Page 10 • Complete questions 1-7

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