What's a Deductible?

How often have you wanted to ask this question? Or what about “How does co-insurance work?” Let us help you sort through all of these complicated terms.

Premium: The amount of money you pay on a regular basis-once a month, four times a year, twice a year, or once a year-to the insurance company to keep your health plan active. You decide how often you pay. You can not apply what you pay for your premium toward your deductible.

Deductible: The amount of out-of-pocket expenses you have to pay each year before your health plan kicks in and starts paying for services. This does not involve co-pays.

Coinsurance: The percentage of money you have to pay out of pocket for covered services. It’s the portion of the bill not paid by your health plan after the deductibles have been reached.

Discount: The reduced out-of-pocket cost you enjoy when you obtain health care services from a network provider.

Free Look Period: The period the member has to review the contract and cancel the policy back to the effective date and obtain a premium refund. This time period is typically 10 days.

That’s all for today’s lesson. If you would like to view more, check out our Extended Glossary!