Most people have health insurance without knowing the meanings of various terms such as “coinsurance” and “premium”. Less than half of all Americans with health coverage say that they understand related terminology, according to a recent study -and among the uninsured, only about 25% know what those terms mean. In this guide, we list four things every insured individual needs to know.
Premiums Aren’t Everything
Every insurance plan has unique traits, and focusing on the premium (monthly payment) will not give you the entire story. To determine whether a plan fits your needs, you should also consider the deductible, or amount you’ll pay out of pocket before your insurance coverage takes effect. If you’re in good health, consider buying health insurance in Allentown, PA with a more substantial deductible. However, if you see the doctor frequently, consider a plan with a low copayment, which is a fixed charge for each use of medical services.
The Difference Between Coinsurance and Copayment
While these are both a way to share costs between you and your insurer, they are two different kinds of payments. With a copayment, you pay a set amount to the healthcare provider. Coinsurance is a percentage that you pay after you meet your deductible. For instance, if your plan covers 70% of charges after the deductible, you’re responsible for the other 30%.
Going Out of Network
Most health plans operate on a network of doctors and hospitals that work under contract to provide services at a certain rate. In most instances, you can use a provider outside the network. However, doing so can leave you responsible for a higher coinsurance payment or deductible. If you travel a lot, consider buying a plan that covers more providers outside the network.
Pay Your Bills
For years, many have treated their insurance cards as a form of credit, never giving thought to the cost of the services received. However, consumers are still responsible for the cost of their own healthcare. As more employers offer Health Insurance in Allentown PA, workers have grown complacent, thinking that their insurance would cover everything. When purchasing insurance, remember that if you don’t pay a non-covered bill, your credit rating can suffer. If you need advice on finding a plan that suits your needs and your budget, ask an insurance agent with Linda Krisko Insurance and Financial for help.
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