Getting confused about Health Insurance, well your not the only one. Below are some key terms you will need to know.
Let’s start with an easy one……
- Premium: Your Premium is the dollar amount that you pay for your health insurance plan. This varies depending on your plan, your age, and location that you live in.
- Deductible: Your Deductible is the amount of money you pay before some medical procedures are covered. An example would be: If you had a $500 Deductible and a hospital stay is subjected to Deductible you would pay $500 and then the Insurance Company would pay a percentage of the remanding bill.
- Copayment: Your Copayment is the dollar amount you will pay to receive medical care such as $25 for an office visit and the insurance company pays the rest.
- Co-Insurance: Your Co-Insurance is the cost sharing between you and the insurance company. After your deductible is met, you and the insurance company cost share the remaining amount of the bill.
- Max out of Pocket: This is the maximum amount of money you will have to pay out of pocket for medical expenses per year, not to include Premiums or Copayment.