With the health insurance Greenville NC open enrollment period right around the corner now is the time to make sure you understand the health insurance terms related to picking out your health insurance plan in case you want to make any adjustments to your current coverage. It can be confusing trying to understand all of the lingo used in healthcare insurance coverage, that’s why Alexander Financial Services is here to define a few common health insurance Greenville NC terms with you to make the decision process a little easier.
A deductible is what you pay annually for health care services before your insurance company pays its share. For example, if you have a deductible of $1500, your insurance plan will start covering your bills once you have paid that amount in full. Most plans cover the cost of things like preventative care in part or in full.
If you have a high deductible health plan (HDHP), you’re paying a larger deductible than most people. With these plans, your deductible is higher, but your premiums are lower. These plans are ideal if you are an individual in good health with no serious health conditions who knows they won’t need much medical care that year. Health savings accounts are usually provided with these plans as well.
A health savings account (HSA) allows individuals to put up to a certain amount of money of pre-tax dollars into a savings account to be used for medical expenses. Withdrawals will be tax-free if you use the money for any qualified medical costs.
Your premium is what you’ll pay the health insurance company for the privilege of having an active insurance plan. Most people pay their premiums every month, but some might be due once a quarter or once a year. If you get health insurance through work, your employer will probably cover a share of your monthly premium as a benefit of working there.
The copayment is the amount you owe to the provider each time you receive certain types of medical care. Copays can vary depending on the kind of service you’re getting.
After you’ve met your deductible for the year you’re not off the hook when it comes to medical bills. You’ll generally face some amount of coinsurance, which is the percentage you’ll pay of medical expenses after the deductible has been reached.
An out-of-pocket maximum amount is the most you’ll pay each year toward costs including your deductible, copay, and coinsurance. Once you’ve met the maximum, your insurance company will pay for the remainder of your care in full, as long as it is essential. Premiums aren’t included in the out-of-pocket maximum and neither are extra services deemed unnecessary, like hearing aids and acupuncture.
With a better understanding of these health insurance terms, you should be able to find a plan that meets your needs and fits within your budget. Finding the best health insurance Greenville NC plan for you and your family doesn’t have to be difficult. At Alexander Financial Services, we can work with you to pick out a health insurance plan that covers your needs without breaking the bank every month. Contact us today to learn more!