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| Health Insurance Terms |  Each person has their own unique method of looking at health insurance that will in turn drive them towards what type of health plan they choose.
While choosing health insurance plan, you have to make sure that you devote enough attention to the small details. Lots of people are caught up in price or coverage, and they do not take the time to look through the other details that are also included.
In case if you do not do this you may finish with a big surprise in the form of a hefty bill. Thus in order to prevent this, you might as well know about every detail of your plan.
Deductible: Lots of health insurance plans have low premiums because they have a high deductible. This is the amount of money you have to pay per year to cover your medical care expenses before your insurance policy begins paying.
Co-payment: This is the amount that you will have to pay a physician for each visit. For example, you may have to pay $5 for every visit to the doctor. And the insurance company will pay the rest. Each health insurance plan has a different co-payment.
Coinsurance: The amount of money that you are required to pay for medical care in a fee-for-service plan after you have met your deductible. The coinsurance rate is usually represented as a percentage. For instance, if the insurer pays 80% of the claim, you pay 20%.
Coordination of benefits: This system eliminates duplication of benefits when you are covered under two or more group plans. As a rule, benefits under the two plans are limited to no more than 100% of the claim.
Covered Expenses: Most insurance plans do not pay for all medical services. Some of them may not pay for prescription drugs; others may not pay for mental health care, etc. Covered expenses are listed in the policy.
Exclusions: Some conditions or circumstances for which the policy will not provide benefits.
Premium: The amount of money that you or your employer pays in exchange for insurance coverage.
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