6 Health insurance terms you must know before you buy a Health insurance Plan
- Premium A premium is a fixed amount you pay to your insurance plan, usually every month. You pay this even if you don’t use medical care that month.
- Deductible If you need medical care, a deductible is the amount you pay for care before the insurance company starts to pay its share. Once you meet your deductible, your insurance company begins to cover some costs of your care. Some plans have lower deductibles, like $250. Some have higher deductibles, like $2000. Many plans provide preventative services and sometimes other health care, before you’ve met your deductible.
- Copayment A copayment is a fixed amount you’ll pay for a medical service after you’ve met your deductible. For example, after meeting your deductible you may pay $35 for a visit to the doctor’s office that would cost $125 if you didn’t have coverage. The health plan pays the rest.
- Coinsurance Coinsurance is similar to copayment, except it’s a percentage of costs you pay. For instance, you may pay 30% of the cost of a $100 medical bill. So you would pay $30 and the health plan would pay the rest.
- Out-of-pocket maximum This is the total amount you’ll have to pay if you get sick. For example, if your plan has a $3000 Out of pocket maximum, once you pay $3000 in deductibles, coinsurance, and copayments the plan will pay for any covered care above that amount for the rest of the year.
- No yearly or lifetime limits Health plans in the HealthCare Marketplace can’t put dollar limits on how much they’ll spend each year or over your lifetime to cover essential health benefits. After you’ve reached your out-of-pocket maximum, your insurance company must pay for all of your covered medical care with no limit according to the affordable care act ACA or the marketplace. Now that you’re are familiar with a few basic terms you now will be able to get your free health insurance quote at Utahhealth.com just enter your zip code below or call us at 801-900-5636. We are local in Utah and offer more health insurance plans than anyone.