Getting health insurance can be a complex process because you have to put in a lot of time and effort into researching keywords related to your coverage options. Even though a lot of people have health insurance, they don’t necessarily have the right knowledge. They mostly succumb to the sales strategies that are implemented by large insurance companies who leverage their lack of understanding to sell policies. Some of the key terms that you should know when you are shopping for health insurance are:
- Copayment
One of the most important keywords to remember is none other than copayment because it will dictate how much you need to pay whenever you visit your healthcare provider. Put simply, it is the amount that comes out of pocket and is a lot lower than the full fee you pay to a doctor. If you wish to pay higher premiums, you will enjoy a lower copay. This verbiage is used because you don’t pay the full cost and only pay a small portion, meaning the cost is shared between you and the insurance company.
- Deductibles
Copayments and deductibles are often confused because they also involve out-of-pocket payments. However, these two are quite different. A deductible refers to the amount you have to pay before your insurance will cover anything. For instance, if your deductible is $500, you will not be eligible for any health insurance coverage until you have spent $500 of your own money. It differs from the copay because deductibles have nothing to do with combined payments between you and your insurance provider.
- Out of Network
One of the largest markets is none other than healthcare, as a horde of providers can be found in every area. However, most insurance companies work with specific companies, which means you cannot get universal health insurance coverage that will work everywhere. Therefore, you need to understand what ‘out of network’ means. If you require medical care, you should look for an in-network provider because it will cost you less. If you visit an out-of-network provider, your health insurance will be applied in a way that your deductibles and copays will be a lot higher.
- Premiums
This is one of the most important terms that you need to understand, not only when it comes to shopping for health insurance, but for insurance as a whole. These are monthly payments that you need to make for maintaining your coverage. It is possible to get them calculated on a monthly, quarterly, semi-annually or annual basis. The premiums charged will vary for everyone because they depend on your medical history, the chosen coverage, pre-existing conditions and many other inputs that can have an impact on the price. If you don’t make these payments, it could result in a liability because insurance policies are considered as contracts that can be pursued in court by the insurance companies. More importantly, you will not have any coverage if you don’t make the payments.
Knowing these terms can help you in making a wiser choice when you are shopping for health insurance.