We talk about health care A TON, but sometimes it’s good to refer back to the basics of it all. Do you understand the meaning of deductible, premium or HSA? If so, give yourself a pat on the back. If not, don’t worry! This blog post has got you covered.
Health care is confusing, but one thing’s for certain: It’s expensive. And health insurance companies don’t always make it easy to understand what’s covered, what’s not, and how much you’ll be on the hook for paying.
Deductible: The amount you pay before your insurance coverage kicks in. It resets annually.
Copay: The amount you pay after you have met your deductible. It’s a fixed price for services and medications, and can vary by the type of physician you visit, the class of medication you’re taking, and other factors.
Out-of-pocket maximum: The top limit of what you’ll spend in a year out of pocket for deductibles and copays.
Premium: Your monthly fee for health insurance. If your employer provides you coverage, then you probably pay a portion of the premium, while your employer pays the rest. A higher premium may mean a lower deductible; on the other hand, a lower premium may mean a higher deductible.
Health savings account (HSA): A type of pre-tax savings account for health expenses. Funds roll over year to year, and some accounts even gain interest.
You can read the original article here.
Source:
Health.com (4 April 2017). “5 Health Care Terms You Need to Know” [Web blog post]. Retrieved from address https://www.health.com/mind-body/healthcare-terms-coinage