Health insurance is a contract between you and an insurance company. In exchange for a monthly premium, the insurer helps cover some healthcare costs, such as doctor visits, hospital stays, medications, and preventive care. Health insurance protects you from high, unexpected medical expenses while encouraging you to care for your health.
- Choosing a Plan. Each plan type has different rules about which doctors and hospitals you can use and whether you need referrals to see specialists. When choosing a plan, consider your health needs and financial situation.
- Paying Your Premium. Each month, you’ll pay a premium to your insurance company to keep your coverage active. This payment is made regardless of whether you visit the doctor or use any medical services.
- Using Your Insurance. For example, if you go to a doctor’s appointment, you might pay a $20 copay while your insurance covers the rest of the visit. If your medical costs are higher, such as needing surgery, you may need to meet your deductible before your insurance covers most of the bill.
- Reaching Your Deductible. If you have a $1,000 deductible, you must pay the first $1,000 of your medical costs yourself. After you’ve met this amount, your insurance kicks in to cover a larger portion of your medical expenses, though you may still owe coinsurance.
- Managing Out-of-Pocket Costs. Every health insurance plan has an out-of-pocket maximum, which limits how much you’ll have to pay in a year. For example, if your plan’s out-of-pocket maximum is $5,000, once you’ve spent that much, your insurance will cover 100% of the services for the rest of the year.
Understanding health insurance can take some time, but it’s critical to managing your health and finances. If in doubt, contact us to clarify any questions about your plan so you can confidently use your coverage when needed.