Terms that You Should Know before Getting Medical Insurance

 

One thing that discourages people to take a deeper look into their health insurances is the terminologies. These are terms that you do not hear firsthand in school. In fact, those who are new to health insurance are hearing these terms for the first time when they apply and it can all be confusing and overwhelming. If you are thinking of enrolling yourself for a health insurance or Medicare Supplement Plans 2019, here is a list of terms that will help you understand the process smoothly Visit Here https://www.bestmedicaresupplementplans2019.com/

  • Premium – This is the fee you pay the health insurance company every month to keep your coverage active.
  • Deductible – This is the total amount that you should pay out of your own pocket before your health insurance company covers the rest of your medical expenses.
  • In-network – This is the system of contracted hospitals, clinics, and doctors, that agreed to give special rates for certain procedures and services for insurance policy holders of a certain health insurance company.
  • Out-of-network – This refers to the hospitals, clinics, and doctors that do not have a contract with the health insurance company. If you get medical services from them, you will be paying more out of your own pocket.
  • Copay – This is the fixed amount that you will be required to pay for a covered service. The amount varies depending on the type of service.
  • Coinsurance – This is the shared cost between you and your health insurance company for the medical care you received. The cost is usually calculated in percentage. Another term for this is “coverage level.”
  • Formulary – This is a list of prescription drugs that are covered by the insurance plan.
  • Tax penalty – In the United States, health care coverage is a requirement. This is the fine you have to pay when you are found to can afford health insurance but you refuse to get one. You must have a healthcare coverage exemption from the federal government to be free from this penalty.
  • Tax subsidy – This is the financial assistance that you can get from the federal government to help pay your health insurance costs. The amount will be based on your total income reported to the IRS for that year.

 Having an idea of what these terms mean will allow you to review your insurance policy in a clearer state of mind and with less confusion. If you have any questions, do not hesitate to ask your health insurance representative. They will be more than willing to assist you with your needs.

 

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