Health Insurance Costs 101

According to this video, you’re going to need good health insurance for when you need to go to the doctor. There are some important parts of your health insurance policy that you’ll need to understand. Three parts of the policy you need to understand are the premium, deductible, and out-of-pocket expense.

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The premium is the amount of money you’ll need to pay each month just to keep a policy. Your policy is what entitles you to have the insurance company pay part of the bill for your medical visits and procedures. The deductible is the amount of money you have to pay each year before the insurance company steps in and covers some of your expenses. Your deductible can be anywhere from $0 to several thousand dollars, depending on the policy you have. Your out-of-pocket expenses are some of the additional monies you have to pay during your medical care journeys. Usually, healthcare policies set an amount for out-of-pocket expenses. Once you have paid these expenses, your insurance company will cover the max costs for your policy.

Copayments or coinsurance is the portion you have to pay when you see a practitioner. Copayments have flat fees, while coinsurance is a percentage of the procedure.

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