Health insurance terminology can be confusing, but knowing these terms is essential to understanding your benefits and responsibilities.
Key Points:
- Premium: The amount you pay monthly to maintain your health insurance coverage.
- Deductible: The amount you must pay out-of-pocket before your insurer starts paying its share.
- Copay: A fixed amount you pay for a covered healthcare service, typically when you receive the service.
- Coinsurance: Your share of the costs of a covered healthcare service, calculated as a percent of the allowed amount for the service.
- Out-of-Pocket Maximum: The most you have to pay for covered services in a plan year. After you spend this amount on deductibles, copayments, and coinsurance, your health plan pays 100% of the costs of covered benefits.
Conclusion:
Understanding these key terms can help you better navigate your health insurance policy and avoid unexpected expenses. Always review your insurance documentation and talk to your insurer if anything is unclear.
