How To Choose Health Insurance: The Basics, Plus 5 Essential Insurance Terms Explained
Where do you even start? Learn how to choose health insurance here.
Choosing the best healthcare plan
With so many options out there to choose from, finding the right insurance can seem more than a little overwhelming. But, as this video points out, it all boils down to asking the right questions.
To understand the video more clearly, here are some basic insurance terms you need to know:
These are the amount of money you have to pay before your insurance starts covering for expenses. For example, if your deductible is $1,000, you might have spend $1,000 each year before your insurance starts taking care of your medical expenses.
A premium is the amount of money you or your sponsor (e.g. your employee) pay to get your insurance.
Similar to deductibles, co-payments are the amount of money you have to pay yourself for a particular service before your insurance will cover you. For example, you might have a $30 co-payment for a consultation. You pay this amount every time you get this service.
Sometimes, instead of (or in addition to) having a fixed amount that you have to pay out of pocket, you have a coinsurance percentage. If you have a coinsurance percentage of 15% for a certain procedure, your insurance should cover the remaining 85%.
5. Maximum out-of-pocket
This means exactly how it sounds. Your maximum out-of-pocket signifies the limit of how much you’ll have to pay yourself. Once you reach this maximum, your insurance will pay for everything else.