Health Insurance Made Simple: Terminology

welcome to health insurance made simple art of picking a plan involves understanding some important health insurance terminology here we'll discuss benefits deductibles co-pays coinsurance and the out-of-pocket maximum let's start with benefits benefits are essentially the healthcare services your health plan covers such as visits to the doctor routine physicals vision test with any health plan there's a premium which is the amount you pay for your health plan there are also out of pocket expenses out of pocket costs associated with health plans are deductibles co-pays coinsurance and the out-of-pocket maximum let's start with deductibles generally a deductible is a fixed amount of money you pay before your plans benefits enter into effect it's important to check your benefits because certain services are available before you pay any money towards your deductible preventive care you have a three hundred dollar deductible based on the plans you chose once you've paid $300 out of pocket for medical services your health plan benefits will begin to cover costs and only pay a portion of your bills and the higher the
premium the lower the deductible for example with a $500 deductible will have a higher monthly premium and a PPO $3,000 which planet has to do with your own health ask yourself do I want low premiums deductible consider when choosing the plan that's right for you what about companies these are flat rate payments made each time you use certain health care services such as visiting your doctor seeing a specialist picking up a prescription at the pharmacy some plans instead of coke or a combination of the two instead of a flat-rate copay co-insurance get the percentage that you pay for health care service let's say a doctor's visit cost $100 and your coinsurance amount is 20% in this case the doctor $20 and your health plan would pay the remaining $80 finally we have the out-of-pocket maximum in some cases a member is required to pay no more than a maximum dollar amount and co insurance copays and deductibles during a particular period this amount is known as an out of pocket maximum and wants of covered expenses and that concludes health plan terminology the words you need to know you can learn more about your health plan options at half dollar like us at facebook.com / app to see what happens. Doing in the community and you can always reach us by phone Monday through Friday from 7 a.m. To 7 p.m. Health insurance made simple understan