Health insurance is an important part of your livelihood, good health, and well-being. But with so many different health insurance options out there, things can get downright confusing. There are an overwhelming number of plans, options, and prices, not to mention plenty of tricky “insurance lingo”. Just how do you sort through it all? Good news: with a little helpful information and knowledge of key terms, you can quickly and efficiently get down to the brass tacks of health insurance.
If you’re going to understand the important differences between health plans and decide the right plan for you, you’re going to have to become familiar with health insurance jargon. Here are the definitions to a few key health insurance terms.
- Deductible – a specified amount of money that the insured party must pay before an insurance company will pay a claim.
- Coinsurance – a type of medical insurance in which the insured party pays a share of the payment made against a claim.
- Copay – a payment made by a beneficiary in addition to that which is made by the insurer.
- Maximum Out-of-Pocket Amount – the most you’ll have to pay for health care services during a specific policy period (usually one year).