health insuranceWhat is Health Insurance?
Health insurance is designed to protect you and your family from the costs associated with medical services you may need when you’re sick or injured. Similar to auto insurance, you choose a plan and agree to pay a specific rate, or premium, each month. Your health insurer then agrees to pay a portion of your covered costs. Payments made by your insurer are typically based on discounts that health insurers negotiate with doctors or hospitals.Help With Your Health Insurance Needs
No one plans to get sick or hurt. But illnesses and injuries can happen at any time. In some cases, they can be devastating to your health and leave you with overwhelming medical bills. Health insurance limits your risk of paying for very expensive illnesses and injuries by covering medical care and other services, such as hospitalization and surgery.Health Insurance Payments
In addition to a fixed monthly premium, you may also pay each time you receive care from a doctor or hospital, have a prescription filled, or receive medical care. Here are some cost-sharing terms you should know:
The amount you pay each year before your health plan starts paying for covered services.
The flat fee you pay when you see a doctor or receive other services.
The percentage you pay for some covered services. If your coinsurance is 20 percent, your health insurance company will pay 80 percent of the cost of covered services; you will pay the remaining 20 percent.
The most you will have to pay for your health care expenses during a plan period (usually a year). No matter what, you will not pay more than this amount each year.