Do you know what a premium is? How about a deductible? A copay? It’s all right—we know as well as anyone that the language of health insurance can be hard to understand. That’s why we’ve assembled a helpful list of plain-English definitions for 33 of the most common health insurance terms.
“Common Health Insurance Terms and Definitions” offers simple explanations for:
- Benefit—the amount an insurance company will pay to a plan member or health care provider (doctor, hospital, specialist, etc.) for medical services.
- Claim—a request by a plan member, or a plan member’s health care provider, for the insurance company to pay for medical services.
- Coinsurance—the amount you pay to share the cost of covered services after your deductible has been paid. This is usually a percentage. For example, if the insurance company pays 80% of the claim, you pay 20%.
- Copayment (copay)—the flat fee you pay for certain medical services (for example, $25 for every doctor visit), while the insurance company pays the rest.
- Deductible—the amount you pay each year to cover eligible medical expenses before your health plan starts paying.
- Premium—the amount you pay each month in exchange for insurance coverage.
And that’s just for starters. Once you have a grasp of these basic terms, you’ll be better equipped to make sense of your health insurance choices—and to make informed decisions about the coverage that’s right for you. View the full article now.
Would you like to know the meaning of a term that’s not covered in our glossary? Let us know!