At Medi-Solutions Insurance Agency, LLC we understand that navigating the world of health insurance can be complex. With all of the elaborate terminology such as co-pays, deductibles, coinsurance, and others of the like, shopping for a health insurance plan can quickly become overwhelming.
That’s why in today’s blog post, we are going to discuss some of these terms and how understanding the common costs associated with a health insurance plan can help you choose the one that best meets your needs and your budget.
Read on to learn more, and if you would like to speak to one of our independent agents about your health insurance options, reach out to Medi-Solutions Insurance Agency, LLC today.
The co-payment, sometimes simply referred to as the co-pay, is a predetermined and set amount that you will be required to pay for specific services. For example, many health insurance plans have a co-payment to see a specialist. Each specialist visit may require a co-pay of $50. In this case, if you visited a dermatologist, you would pay a flat rate of $50 for that visit. If it is discovered during your visit that you require additional testing or treatment, there will very likely be additional charges, which can be discussed with your doctor when scheduling.
The deductible is another cost that is commonly associated with health insurance plans. This term in particular seems to give people a bit more trouble in understanding. The deductible is the amount of money that you will pay out of pocket for health expenses before your health insurance policies begins to pay.
For instance, if your health insurance plan has a deductible of $2,000. You would be required to pay out-of-pocket until you pay for $2,000 worth of medical expenses. After that point, your health insurance policy will cover everything else for the year according to your coinsurance agreement.
“Coinsurance” is another term that is often heard when speaking about health insurance costs. It is the amount that the health insurance policy will pay after your deductible is met and is typically described in percentages. Some policies may cover 100% of your costs after your deductible is met, while others may split the costs. A common example is 80% to 20% coinsurance. This means that after your deductible has been met, your policy would pay for 80% of your costs, and you would be responsible for the remaining 20%.
Keep in mind that preventative visits are typically covered in full by health insurance policies even before the deductible is met. If you are unsure of whether a visit or other costs is considered preventative, you or your doctor can reach out to your insurance provider before moving forward.
In addition to co-payments and deductibles, there are other costs that are associated with health insurance plans that you should be aware of before deciding on a plan. Each cost is briefly described in the chart below.
We hope that this article helped you understand co-payments, deductibles, and other costs associated with health insurance policies. It’s essential to understand these terms and others, so that you can make the best decision when it comes to choosing a health insurance plan.
Whether you are ready to discuss your health insurance policy options, or you have additional questions, the team from Medi-Solutions Insurance Agency, LLC is here to help. We strive to ensure that all of our customers have the information they need to make an educated decision that they can feel confident in when it comes to insurance. Reach out today to get connected with an independent agent.
Information is for educational purposes only and should not be construed as an offer of insurance, advice, or recommendation. The information provided is not intended as tax, financial, investment or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.
Not connected or endorsed by the US Govt or the Federal Medicare Program. Medi-Solutions Insurance Agency, LLC is an independent Life, Accident and Health Insurance Agency, NJ Ref#1642311. Some plans and features may not be available in all states.
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