When comparing health insurance plans, many different terms will be thrown around, and while you may be familiar with them, you may not completely know what they mean. Here are a few health-insurance terms you need to know when you shop for insurance along with their meanings:
- Coinsurance—This refers to how much you must pay every year once you have met your plan’s deductible. When you make a coinsurance payment, it can only go towards services covered under your plan. For example, if your medical insurance will pay 80% of your medical bills after you meet your deductible, you will be responsible for coinsurance of 20%.
- Copay—Your copay is what you will pay your healthcare provider when you go and receive services. Depending on your insurance plan, you copay may vary depending on the type of doctor you are seeing or whether you have met your deductible.
- Deductible—The deductible is how much you will pay towards healthcare services before your insurer starts helping with the cost. For example, if your health insurance plan has a yearly deductible of $2,000, you will be expected to pay $2,000 of all your health insurance expenses, and when you reach this amount, your insurer will help cover any additional costs.
- Premiums—Most health insurance plans require regular premiums. These are usually monthly payments you pay to your insurance provider to maintain your coverage.
Do you have questions about health insurance plans? Contact us at Jeannie Pierce Insurance Agency today!