Health insurance used to be a fairly simple process. But today, whether obtaining health insurance privately or through an employer, we’re being offered a variety of insurance plans with varying benefit levels, making the choice more difficult.
Before you enroll in another health insurance plan, here are some common terms you need to know – and understand:
Co-Insurance – Co-insurance is the amount that you are responsible for out-of-pocket. Most plans have levels such as 80/20, which means that once you have met your deductible, you are responsible for 20 percent of all medical costs incurred until you reach your maximum out-of-pocket (see below).
Co-Payment – this is the amount that is paid for certain services, such as doctor’s visits, lab work, urgent care or emergency room services. Co-payments typically do not go towards your annual deductible, but they do go towards your annual out-of-pocket costs. (see below)