Finding the right health insurance plan can feel like an overwhelming task. There are several things to consider, like the type of plan you want, premiums, prescription requirements, and any costs associated with your care. In your search for a healthcare plan, you may have come across terms you don’t understand. But fear not. In this blog post, I’ll explain the keywords with health insurance plans you should know and how they impact your healthcare experience.
Premiums
When you have a health insurance plan, you typically have to pay a monthly premium. Your premium is the amount of money you pay each month for coverage. The cost of premiums varies depending on the kind of plan.
Out-of-pocket costs
These are the costs or payments for healthcare services that you have to pay yourself. They vary based on your healthcare plan and generally include deductibles, copayments, and coinsurance payments.
Deductibles
Deductibles are the money you spend on your care before your insurance covers care. For instance, if your healthcare plan has a $500 deductible, you’ll have to pay $500 in medical services; once you reach your deductible, your instance starts to cover your care.
Copayments
Copayments or copays are the flat fees you pay for specific health care services. You pay them at the time of the service.
Coinsurance
Coinsurance is the portion of your medical bills that you are responsible for paying. It is usually a percentage of the total cost of your care.
Enrollment
Enrollment period(s) is the annual windows or time frames you can select the healthcare plan that meets your healthcare needs. People with existing healthcare plans can also renew and modify their plans during open enrollment.
In-network/Out-of-network
In-network healthcare providers contract with your health insurance plan to provide healthcare services. On the other hand, out-of-network healthcare providers don’t. If your provider is out-of-network, you’ll wind up spending more money on your healthcare.
Whether you’re shopping for new insurance or have picked the plan you want, the bottom line is that choosing the right health insurance plan depends on your healthcare needs. Knowing the difference between these keywords can help you make better decisions about your healthcare.