Question

Types of Insurance Plans

Insurance plans are set up in a variety of ways. Each type of insurance plans has its own unique characteristics, but many plans use a combination of the more desirable features of each type of insurance in order to attract customers.

Requirements
List and explain each of the following: Fee-for-service, HMO, PPO, Medicare, Medicaid, Tricare, CHAMPVA, Workers' Compensation, Private Health Insurance (BCBS), Disability and Long-term Care insurance.

Petty Cash

From time to time, small amounts of cash are needed in the medical office, for certain expenses that are often less than $10. The purpose of a petty cash fund is to enable the staff to purchase items of small value quickly and easily.

List the seven steps that are needed to maintain a petty cash fund of $100.

Requirements
This week your Final Course Project is due. You will need to submit revised Parts I, II, III, IV, and V along with Part VI to the drop box.

A Title Page, Table of Contents, and two properly formatted references for each part are also required.

Answer 1

1. Fee-For-Service (FFS)

Fee-for-Service (FFS) Plans (non-PPO) are the traditional type of insurance plans.

In FFS non-PPO the health plan pay the covered medical expenses either directly to the medical provider or the amount will be reimbursed to the person after filing an insurance claim. A person visits the hospital or physician of their choice if medical care is needed. It has some disadvantages like extra paperwork and more cost.   

2. Fee-for-Service (FFS) Plans with a Preferred Provider Organization (PPO)

PPO is a type of FFS and it allows the person to consult the medical providers who have reduced charges to the plan. When PPO provider is used less money is spent out-of-pocket and there will not be the burden of paperwork.

But PPO does not ensure benefits for all services received in the hospital, like lab work from independent practitioners.

3. Health Maintenance Organization (HMO)

It is health insurance which provides care through a network of physicians and hospitals in a particular location or service areas. The healthcare services will be coordinated by HMOs. They also provide freedom from paperwork and bills of covered services. A person’s eligibility to be enrolled in an HMO is assessed by the place they live or where they work. Some plans offer a degree of reciprocity and that will be covered in their brochure. The main advantage of HMO is they limit the out-of-pocket costs to the relatively low amounts.

4. Tricare

TRICARE was formerly known as the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS). It is a health care program offered by the United States Department of Defense Military Health System. It offers civilian health benefits for U.S Armed Forces military personnel, military retirees, and their dependents. It also includes some members of the Reserve Component for the coverage. The TRICARE is managed by the Defense Health Agency (DHA)

The Tricare program is managed by the Defense Health Agency (DHA). It ensures coverage to :

Health plans

Special programs

Prescriptions

Dental plans

5. Medicare

Medicare is a health insurance program specially designed for:

People age 65 or older.

People under age 65 with certain disabilities.

People of all ages with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a kidney transplant).

Medicare Part A -Hospital Insurance

Medicare Part B- Medical Insurance

Medicare Part C -Private Insurance Option

Medicare Part D - Prescription Drug Coverage

6. Medicaid

Health insurance specially designed for low-income groups, families and children, pregnant women, the elderly, and people with disabilities. It provides the low-cost health coverage for the people under cover. The Medicaid programme in many states is extended to cover people below certain income levels.

7. Long term disability insurance

They are aimed at protecting the employees from a loss of income, in case they are unable to work due to illness, injury, or accident for “long-term.” Long-term disability insurance ensures a certain percentage of their income based on the specifics of the policy.

8. Long term care insurance

Long-term care insurance provides hands-on assistance for the people who can’t take care of themselves due to prolonged disability illness or cognitive impairment for a long duration. A person qualifies for this type of insurance when any two activities of daily living cannot be performed independently.

9. BCBS

Blue Cross Blue Shield (BCBS) is another nationwide provider of health insurance. 37 local and independently operated companies are the key components of BCBS.

The quality of care will vary based on the location. BCBS has good prices, the wide range of options and discount programs on health-related products and services.

10. Workers compensation

Workers compensation insurance provides coverage for employees when any accident in the workplace occurs. It ensures legal protection to the employer and medical care and compensation for employees.

11. CHAMPVA

The Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA).

The CHAMPVA the Department of Veterans Affairs shares the cost of covered health care services and provides coverage to eligible beneficiaries.

References:

https://www.opm.gov/healthcare-insurance/healthcare/plan-information/plan-types/

https://www.military.com/benefits/tricare

https://www.tricare.mil/About

https://www.cms.gov/Medicare/Medicare-General-Information/MedicareGenInfo/index.html

https://www.healthcare.gov/glossary/medicaid/

https://www.mdmag.com/physicians-money-digest/contributor/bob-bhayani-mba/2016/11/disability-insurance-vs-long-term-care-insurance-which-is-best-for-you

https://www.toptenreviews.com/services/insurance/best-health-insurance-providers/blue-cross-blue-shield-review/

https://www.iii.org/publications/insuring-your-business-small-business-owners-guide-to-insurance/specific-coverages/workers-compensation-insurance

https://nvf.org/champva-civilian-health-and-medical-program/

Petty cash :

The steps in setting up and maintaining the petty cash fund are as follows:

1. Estimate:

An estimate of the small amount needed for a period – a month- is calculated.

2. Drawing a check for the estimated total amount to put in the fund

3. Appoint an in charge for petty cash

Petty cash disbursal is done through the in charge

4. Lockbox

The petty cash is kept in a locked box along with the petty cash vouchers

5. Determine the withdrawal limits

6. Petty cash log is maintained

7. Replenish the cash

The used amount should be collected from the concerned department with receipt

References:

http://accounting-financial-tax.com/2008/09/petty-cash-and-its-management/

http://accounting-financial-tax.com/2008/09/petty-cash-and-its-management/

http://www.jajonescpa.com/fyi/pettycash.htm