Shopping for health insurance can feel like trying to decipher a foreign language, especially with the abundance of unfamiliar terms. At Advantage Insurance Network, providing coverage throughout Cincinnati, OH, we understand how overwhelming it can be, so we’re here to help you feel confident and informed before making any decisions. Let’s break down some common health insurance terms you should know.

Premium: Your Monthly Cost for Coverage

The premium is the amount you pay each month to maintain your health insurance policy. Think of it as the cost of keeping your plan active, regardless of whether you use medical services that month.

Deductible: What You Pay Before Insurance Kicks In

Your deductible is the amount you’ll need to cover out-of-pocket for certain medical expenses before your insurance starts to contribute. For example, if your deductible is $1,000, you’ll pay that amount first before your provider begins covering a portion of the costs.

Copays and Coinsurance: Sharing the Costs

Once your deductible is met, you may still share the cost of services. Copays are fixed amounts, such as $25 for a doctor’s visit. Coinsurance, on the other hand, is a percentage of the service cost. For instance, you might pay 20% of the bill while your insurance covers the remaining 80%.

Out-of-Pocket Maximum: Your Financial Safety Net

This is the most you’ll spend in a year on covered services. After reaching this limit, your insurance will pay 100% of eligible costs for the rest of the year.

Understanding these terms is the first step to finding the best health insurance plan for your needs. If you’re ready to explore your options, contact Advantage Insurance Network, serving the greater Cincinnati, OH region today. We’re here to help!