Jargon Simplified: Health Insurance
Aspects of Any Health Insurance Plan
Premium: Cost of your insurance.
Deductible: Amount you pay before the insurer pays any expenses. The higher the deductible, the lower your premiums will generally be.
Copayment: Amount you pay every time you visit the doctor.
Coinsurance: Percentage you are responsible for after you pay the whole deductible amount.
Maximum Out of Pocket: The maximum amount you will pay annually, no matter how high the bills are, before an insurer pays all remaining bills.
Most Common Plans to Choose from
PPO: (preferred provider organization): Uses a network of doctors to provide lower costs, but you can also choose out-of-network doctors at a higher cost.
HMO: (health maintenance organization): Focuses on preventative care and assigns a primary care physician as your “gatekeeper”.
Other Benefits that May be Available in Your Plan
Flexible Spending Account: (FSA): Account you contribute to tax free to pay for medical expenses. If you don’t use money you contribute for the year, you lose it.
Health Savings Account: (HSA): Account you contribute to tax free to pay for medical expenses, but is only available for high deductible plans.