Health Insurance Lingo Explained
Navigating health insurance can feel like learning a new language. Words like premium, deductible, co-pay, and coinsurance often pop up, leaving you wondering what they all mean. Don’t worry, we’re here to help!
At Glick Insurance Agency in Beachwood, Ohio, we believe understanding your health insurance shouldn’t be a headache. We’re here to break down these common terms into plain English so you can feel more confident about your coverage. Let’s dive in!
1. Premium: Your Monthly Health Club Fee
Think of your premium like your monthly membership fee for a health club. You pay it every month, just to be a member and have access to the benefits.
- Simply put: This is the regular bill you pay to have health insurance. You pay it whether you visit the doctor or not.
2. Deductible: Your “Pay-First” Amount
Your deductible is like the “first bill” you have to pay for certain medical services each year before your insurance starts paying a big part of the cost.
- Simply put: If your deductible is $1,000, you pay the first $1,000 in medical bills yourself. After that, your insurance steps in to help. (Good news: many preventive services, like your annual check-up, are often free even before you meet this!)
3. Co-pay: A Small Fee Per Visit
A co-pay (or copayment) is a small, set amount you pay each time you go to the doctor or pick up a prescription.
- Simply put: It’s like a flat fee. You might pay $30 to see your family doctor or $10 for your medicine. You pay this each time you use the service, even after your deductible is met.
4. Coinsurance: Your Share of the Remaining Bill
Coinsurance is a percentage of the bill you pay for covered services after you’ve met your deductible. Your insurance pays the rest.
- Simply put: Let’s say your coinsurance is 20%. Once you’ve paid your deductible, if a medical service costs $100, you’d pay $20, and your insurance would pay $80. It’s how you and your insurance share the cost.
Why Does This Matter?
Knowing these terms helps you choose the right plan and avoid surprises. A plan with a lower premium might have a higher deductible, and vice versa. It’s all about finding the right balance for you and your family.
Still have questions? That’s what we’re here for!
At Glick Insurance Agency, we’re dedicated to helping our neighbors in Beachwood, Ohio, and the surrounding areas understand their health insurance options. We’ll simplify the jargon and help you find a plan that makes sense for your life and your budget.
Ready to chat? Call Glick Insurance Agency today!
