Learn the lingo! When you are researching which health insurance plans to buy, navigating the jargon can be one of the most confusing parts. How familiar are you with health insurance-related terms? Even if you are hesitant to make a final decision without having all of the information at your fingertips, we can help you with that concern. Not sure what we’re talking about? Don’t worry about it, because here is a rundown of what you should know!
Number 1: The Premium
First things first, let’s talk about the premium. Premiums represent the amount of money you pay to the insurance company every month. That way, your coverage continues and will not be canceled due to nonpayment. This figure is often the first and most obvious indicator of what you’re getting for your money. That’s why budgeting for your healthcare costs month by month can make things so much easier.
Number 2: The Deductible
Unfortunately, the deductible can serve as a barrier to top-tier healthcare. This insurance term refers to the amounts you need to pay before the insurance carrier pays for their portion. Comprehensive deductibles apply to any services you might need, while separate deductibles could apply to dental and vision services. Lower deductibles tend to mean higher premiums and vice versa.
Number 3: The Copayment
Copayments are more commonly referred to as “copays,” which are incurred at the point of service. Getting medication for $5 counts as a copay, which is similar to paying $20 at your dentist. Different plans feature different copay amounts, but they’re not going to exceed $50 at a time. Regardless of your circumstances, those costs can quickly accumulate.
Number 4: The Coinsurance
Of all of the vocab words on this list, you might be least familiar with the notion of coinsurance. This term merely refers to the percentage of costs tied to particular services once you’ve met or surpassed your deductible threshold. When you have a higher coinsurance plan in place, it also means that your premiums will be lower.
Number 5: The Out-of-Pocket Maximum
Paying out-of-pocket can be particularly difficult. Since it’s painful to your wallet, it could cause you to avoid scheduling appointments no matter how urgent or excruciating the medical issues at risk are. Healthcare issues should never interfere with your quality of life. As such, the out-of-pocket maximum exists. This measure caps how much money you’ll need to pay during a specified benefit period. However, once you’ve reached your out-of-pocket maximum, your insurance provider will step in, and 100% cover the allowed amount for covered expenses.
A Customer Testimonial
This week’s testimonial comes from Wally Kohlhaus. Wally, an employee of the Baltimore Auto Supply Company, had this to say about our services rendered: “I sure am glad that I signed up for the Accident Plan when I had the chance. Drew Skibitsky from The MWE Partnership explained the plan over the summer, how it covers you 24 hours a day, etc., but I didn’t realize how soon I would be using the policy.” Thanks, Wally, and way to go, Drew!
Get 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 one-stop shop 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 all the latest voluntary benefit news!