Premium Essay

Health Insurance

In: Business and Management

Submitted By ankurara
Words 1209
Pages 5
Health
Insurance
Basics:
Key Words and
Phrases You Need to Know

Shopping for insurance can be confusing, but the new health care law makes it easier to understand. This simple guide will help you make smarter choices for you and your family.

KEY WORDS AND PHRASES

What You Pay
There are different costs associated with health insurance.
When choosing a plan, it is important to take into account all of the costs for each plan.

Premium
The money you pay the insurance company to buy the plan. You usually pay this monthly or every pay period. If you get coverage through your job, your employer may also pay a part of the premium.

Deductible

$

The amount you have to pay for your
$
health care each year before your
$
insurance starts paying for care. Similar to car insurance, many health plans require you to pay a certain amount “out of pocket” before their coverage kicks in.
For example, if your deductible is $300, you have to pay the first $300 of your medical costs yourself before the insurance starts paying.
In some plans, the deductible applies only to services that you get outside their “provider network.” Also, some plans have a separate deductible for prescription medications.
Usually, the deductible does not apply to preventive services. KEY WORDS AND PHRASES

What You Pay
Copay/Co-insurance
The money that you may have to pay
“out of pocket” for each service you receive. This could include an office visit with a doctor, a prescription medicine, an x-ray, or a hospital stay.

$

If the money you pay is a set amount (for example, a $15 payment to a doctor), it is called a copay (or copayment). If the money you pay is a percentage of the cost of the service (for example, 20 percent), it is called co-insurance. Copays and co-insurance can vary depending on the kind of service it is and whether...

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