It is important to understand that the cost of health services is not completely eliminated by paying the monthly premium. There are other costs associated with major medical insurance coverage that you have to meet.
The first cost we'll discuss is the deductible. The deductible is a pre-arranged dollar figure that you'll have to satisfy (pay) before the health insurance company begins to contribute any money to your health care costs.
Your deductible can be a significant out-of-pocket expense, particularly because it must be satisfied each year before the company pays. (So paying $1000 this year for medical services will not decrease your deductible next year.)
Deductibles can range from a few hundred dollars to a several thousand. While some health insurance policies do not involve deductibles, others involve them only in certain cases. Again, the higher the deductible, the lower your monthly premiums.
The other expenses you will encounter are co-payments and your co-insurance. All medical insurance policies will require that you agree to one or both of these types of charges. A co-insurance payment means that you will be required to pay a certain percentage of your health care costs, while a co-payment means you'll be required to pay a certain, pre-set dollar amount for each medical service you receive before your medical insurance kicks in.
These are usually charged in addition to your deductible. In either case, the medical insurance company will pay a substantial amount of your medical costs in comparison to your financial responsibility.
The point of having medical insurance is, after all, to alleviate the financial burden on you and your family in case of medical emergencies and/or a chronic illness.
The first cost we'll discuss is the deductible. The deductible is a pre-arranged dollar figure that you'll have to satisfy (pay) before the health insurance company begins to contribute any money to your health care costs.
Your deductible can be a significant out-of-pocket expense, particularly because it must be satisfied each year before the company pays. (So paying $1000 this year for medical services will not decrease your deductible next year.)
Deductibles can range from a few hundred dollars to a several thousand. While some health insurance policies do not involve deductibles, others involve them only in certain cases. Again, the higher the deductible, the lower your monthly premiums.
The other expenses you will encounter are co-payments and your co-insurance. All medical insurance policies will require that you agree to one or both of these types of charges. A co-insurance payment means that you will be required to pay a certain percentage of your health care costs, while a co-payment means you'll be required to pay a certain, pre-set dollar amount for each medical service you receive before your medical insurance kicks in.
These are usually charged in addition to your deductible. In either case, the medical insurance company will pay a substantial amount of your medical costs in comparison to your financial responsibility.
The point of having medical insurance is, after all, to alleviate the financial burden on you and your family in case of medical emergencies and/or a chronic illness.
Visit us at Lay and Williams Affordable Health Insurance
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