Madigan Insurance Group, Inc.
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Insurance Terms You Need to Know
Dealing with the world of health insurance and understanding your costs can be confusing. It’s even more confusing when you don’t understand some of the common terms used to talk about the costs. Here is a quick overview of some of the most common terms and what they mean:
Premium – Premium is the amount you pay to have the plan. This is typically paid every month, but can be paid quarterly or semi-annually if your insurance carrier allows.
Deductible – Deductible is the amount you must pay for health care or prescriptions before Original Medicare, your prescription drug plan (PDP), or your other health insurance starts contributing.
Copay – A co-pay is an amount you may be required to pay as your share of the cost for a medical service or supply, such as a doctor’s visit. Usually this is a set dollar amount. For example: $20.00 copay for a visit to your primary doctor.
Coinsurance – Coinsurance is the amount you are required to pay for your share of the services after you’ve met your deductible. This number is usually a percentage.
Knowing these terms will help you better understand the costs associated with your health insurance and medical costs.
As always, contact us with any questions you may have!
August 27, 2020 // By Kim Kozak