Megapolis Insurance

When looking for affordable health insurance plans you will find that premiums, deductibles and co-pays are mentioned a lot. If you don’t know what these mean it can make the process exhausting and very confusing. Here is a quick, easy guide on how to navigate through these basic health insurance terms.

Premiums. To put it simply, premiums are the monthly payment that you (the policy holder) would pay to your health insurance provider. Premiums can be be paid as one lump sum yearly or as a monthly payment. Premiums must be paid even if you don’t make a claim to your health insurance provider. If you have insurance through your work, your employer will pay the monthly premium which is usually deducted from your paycheck. Health insurance premiums can often be lower if you live a healthy lifestyle, i.e. exercising regularly and not smoking.

Deductible. Your deductible is how much you must pay out-of-pocket before your health insurance provider will begin to pay. For example, if your deductible is $500, you must pay the $500 before your insurance provider will kick in and pay. The percentage of how much your health insurance provider will cover varies greatly from plan to plan. After you meet your deductible limit and your health insurance provider begins to pay out, you will only be responsible for your premium payments, co-payments and other medical expenses not covered by your plan. Premium payments do not go toward your deductible.

Co-pay. A co-payment is a flat amount that you would pay when you are picking up any prescriptions or when you visit your doctor/medical service provider. This payment is made out of pocket and made each time you visit a doctor or receive a service. For example, your health insurance plan may pay for a visit to the doctor, but you would need to pay $20 per visit. Because co-pays can become a pricey expense if you are visiting a doctor multiple times a month, it may make people think twice about visiting the doctor for every little ache and pain.

Money Saving Tips:

A plan with a high deductible will have a low monthly premium, and a high premium will have a low deductible. Knowledge is power. Research your health care plan and know which would work best for you and your family. If you use a lot of medical services, it is important to gauge in the cost of other services that might not be covered in your health insurance plan.

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