Medical care is expensive. Really expensive. And as the number in my household continues to increase, I become more and more aware of how expensive it can be. So I am for grateful when health insurance can help offset the expenses.
For those of you starting out on your own, trying to understand your health insurance plan can be overwhelming. There are many new terms to learn. And while it may be tempting to avoid learning about your plan, a basic understanding can play a vital role in ensuring you take full advantage of your plan.
Stewardship is not just about money. It is about anything and everything God has given you. Including health insurance plans. So you should try to steward your plan well.
Before you explore your plan, what are some of words you need to know? Let me get you started with five of them.
- Premium. This is the amount paid to have the health insurance plan. It is either paid by you, your employer, or some combination of both. If your employer provides health insurance, your portion of the premium is typically taken out of your paycheck.
- Deductible. This is how much you have to pay before your insurance starts covering some or all of the medical costs. For example, if you have a $1,000 deductible, you will pay $1,000 before the insurance starts covering your medical costs. Knowing your deductible will help you with budgeting and healthcare decisions. It is important to note that, in most cases, copayments do not go toward your deductible. This leads us to the next term.
- Copayment. Or “copay” for short. This is a fixed amount you pay for a specific medical service. For example, you may have a $15 copayment for a name brand drug at the pharmacy or a $25 copayment to see you primary care physician. The insurance company pays the rest. More than likely, these copayments would not go toward the $1,000 deductible in the prior example.
- Coinsurance. After you meet your deductible, it is likely that you will continue to cover a portion of the medical services. For example, if you have a 80/20 coinsurance plan, you will pay 20% of the medical service. The insurance company pays the other 80%.
- Out-of-pocket. With many health insurance plans, there is a point where you no longer have to pay for the covered medical services (you do still have to pay the premium). This is called your out-of-pocket limit. In 2016, the maximum limit is $6,850 for individuals and $13,700 if the plan covers more than an individual. Of course, plans can offer a lower limit. Your deductible and copayments go toward your plan’s out-of-pocket limit.
Understanding the basics of your Health Insurance In MD plan is becoming increasingly important. The knowledge will help you get the most out of your plan and, hopefully, save you some money. Find a company that helps seniors with all the common issues met at that stage in life. No sense in getting a program that overlooks the basics. Do your research! Even for the beauty procedures. Learn the butt implants cost to begin with.
Steward your health insurance plan well, take some time to study your plan, and maximize your benefits. Your health and your wallet will be glad you did.