How Does Health Insurance Work?

Whether you just turned 26 and are finally looking for your own health insurance plan, or if you’ve had health insurance, but are unsure of exactly what it entails, look no further! Health insurance can be an extremely beneficial and necessary tool, and you should understand exactly how it works and what you can get out of it!


A deductible is the amount you agree to pay each year before your insurance kicks in. For example, if you have a $500 deductible, you will pay the first $500 worth of medical bills, before the insurance pays the rest.


Coinsurance is a cost-sharing requirement where you pay a certain percentage of covered medical expenses, and the insurance agency pays the rest. Once the deductible is meant, you split costs through his percentage system until you hit your out-of-pocket limit.

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Out-of-Pocket Limit

This limit refers to the maximum amount of medical expenses you will pay annually. If you have a $2000 out-of-pocket limit, you would pay the first $1,000 of your deductible, then whatever percentage has been agreed upon of your coinsurance for $1,000 until you hit this limit. From that point, the insurance agency covers the entirety of the expenses.

Any health insurance agreement will have an annual coverage limit, meaning there is a cap to what they will pay for in regard to your medical bills and expenses. If you want to learn more about health insurance, contact your provider to see what deductibles, coinsurance options, and out-of-pocket limits they provide.

Health Insurance Alternatives

In addition to several large or independent healthcare providers, there are also many alternatives to traditional health insurance. One of the most common alternatives you can see is a health share ministry. In these businesses, communities have open communication and help support one another through sharing each others financial burdens when it comes to healthcare. One example of these companies is Jericho Share insurance.

In conclusion, be sure to explore all of your insurance or coverage options before you commit to a plan. With so many different systems to choose from, you’re sure to find the right plan for you!

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