How familiar are you with health insurance terminology?
When researching health insurance options, navigating its terminology can be confusing. How familiar are you with health insurance terminology? Even if you are hesitant to make a final decision without having everything at your fingertips, The MWE Partnership can assist you. Here is a rundown of what you should know.
Learn the Lingo
Let’s Talk About the Premium
As part of your health insurance terminology, let’s discuss the premium. Premiums are the amount of money you pay to the insurance company monthly. That way, your coverage continues and will not be canceled because of nonpayment. The premium is often the first indicator of what you are getting for your money. That is why monthly budgeting for healthcare costs can make things much more manageable.
The Deductible
On the other hand, the deductible can be a barrier to receiving top-tier healthcare. This insurance term signifies the amount you must pay before the insurance carrier pays for their portion. Comprehensive deductibles apply to needed services, while separate deductibles could apply to vision and dental services. Lower deductibles are prone to higher premiums.
The Copayment
Most people commonly refer to copayments as “copays” sustained during service. Various policies feature different copay amounts, but they don’t exceed $50 at a time. For instance, obtaining medicine for $5 is considered a copay, similar to paying $20 for a dental service. However, those costs can quickly accumulate despite your circumstances.
The Notion of Coinsurance
Of all the health insurance terminology words on this list, you may be least familiar with coinsurance. Coinsurance means the percentage of costs linked to particular services once you have met or surpassed your deductible threshold. Your premiums tend to be lower when you have a higher coinsurance policy.
The Out-of-Pocket Maximum
Paying out-of-pocket can be hard on your wallet because it could cause you to avoid scheduling appointments no matter how urgent or excruciating the health issues at risk are. Healthcare problems should never interfere with your quality of life. The out-of-pocket maximum exists because it measures how much you must pay during a certain benefit period. Once you’ve reached your out-of-pocket maximum, your insurance carrier will step in and cover 100% of the allowed amount for covered expenses.
Get in Your Voluntary, Supplemental, and Health Insurance Policies with the MWE Partnership!
Are you a business looking to provide your employees with essential voluntary benefits? If so, look no further than The MWE Partnership. When you choose The MWE Partnership, you get experienced service and comprehensive voluntary benefit options that will meet all your employees’ needs. With over 17 years of experience, The MWE Partnership is your go-to provider for all your supplemental benefit needs. If you are interested in finding out how The MWE Partnership can help your business, contact us today! We encourage you to like our Facebook page and follow us on Twitter and LinkedIn for the latest voluntary benefit news!