Frequently Asked Questions on Health Insurance
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A premium is the monthly cost of keeping your insurance policy in effect. Health insurance premiums are determined by a variety of factors, including your medical history, your lifestyle, and your current health status.
A deductible is an amount of medical expenses you are responsible for paying before your insurance starts covering you. A common major medical deductible is $1,000 ý this means you would be responsible for paying the first $1,000 in major medical bills before receiving coverage. Having a higher deductible usually means you enjoy lower monthly premiums. Check the Glossary for In and Out of Network considerations
A co-payment is a fixed-dollar amount that you are responsible for paying for a particular medical service. For example, many plans have $20 co-payments for doctor's visits. This means it only costs you $20 to see a doctor.
Coinsurance is an amount of the cost of a medical service that you are responsible for paying. Unlike a co-payment, which is a fixed-dollar amount, coinsurance is expressed as a percentage. For example, many insurance plans have 20% coinsurance for hospital costs ý meaning you pay 20% of the total cost of a trip to the hospital. Most have a cap, sometimes called a Stop-Loss, on the amount you will have to pay before the policy starts paying 100% of covered expenses up to the policy maximum. See Glossary for In and Out of Network considerations.
An out-of-pocket expense is any cost you have to pay yourself when receiving medical care. This includes your deductible, co-payments, and coinsurance. Most health insurance policies have an annual maximum out-of-pocket expense. Once youýve paid out enough money to meet that maximum, your insurance company will pay the rest of your covered medical costs. See Glossary for In and Out of Network considerations.
Managed care is a form of health insurance that stresses preventive medicine and affordability. In a managed care plan, you typically choose a ýPrimary Care Physicianý who is responsible for approving specialist and hospital care. Managed care was originally introduced as a way to control healthcare costs. It's now the most common form of health insurance in the United States. HMOs and PPOs are examples of managed care.
Health Savings Accounts aren't health insurance plans. Instead, they are a financial tool designed to help make your healthcare more affordable. The money you deposit in an HSA is tax-free. You don't pay taxes on qualified withdrawals, either. In effect, it's like getting extra money from the government to pay for healthcare. To open an HSA, you first have to purchase a high deductible health plan. See Glossary for more details.
Having health insurance isn't just about paying medical bills. It's about knowing that you'll always have access to quality care. Health insurance makes seeing the doctor easy and affordable ý and that means you're more likely to stay healthy.
The best way to explore your health insurance options is to get the free consumer oriented advice of our Agency. Let us cut to the chase, help you select a plan that fits your needs, and save you a lot of online searching.
We have Quoting Link that is just like everyone else-it gives numbers on popular plans we have selected that probably do not fit your situation. And there are restrictions placed on all quote engines by the Carriers whereby the figures may not be correct if you use tobacco or have other health issues.
We will be honored to help you.
That depends on who you are. There is no single best policy for everyone. Of course, you can always search for the Perfect Plan that we discuss in Consumer Tips.
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