Common health insurance terms and definitions.
Whether you’re looking for your first health insurance policy or you’re finally reviewing your current coverage, you may quickly realize that there are certain terms that don’t make sense. We know just as well as anyone that the language of health insurance can be hard to understand. That’s why we’ve rounded up a few of the most important terms to know so that you can get a better understanding of your policy.
A deductible is the amount of money that you pay out-of-pocket towards covered medical costs before the insurance company starts to contribute to your bills. For example, if you have a $1,000 deductible, you will need to pay the first $1,000 of your medical bill before your insurance kicks in.
This is the amount you are required to pay for a medical claim, apart from any copayments or deductible. If your health insurance has a 20 percent coinsurance requirement, then a bill of $200 would cost you $40 and the health insurance company $160. The coinsurance will apply after you’ve met your deductible.
The copay is the flat rate you’ll pay for a specific service. Once the copay is paid, an insurance company usually handles the remainder of the covered medical expenses.
Need to find reliable health insurance to suit your needs? At Lou Aggetta Insurance Services, our experts can help you find the right policy and ensure that you understand the ins and outs of your coverage. Contact us today to get started.