Over the next few weeks we will go over “The Basics” terms in insurance. So you will have the ability to shop and compare different options, especially when getting new health insurance. Today’s terms is Annual Deductible and Coinsurance.
Your Annual Deductible – The Amount you Pay before your Coinsurance Kicks In.
Your annual deductible is the amount you must pay for covered care each year before your health insurance begins to pay. For example, a $2000 deductible will require you to pay $2,000 out-of-pocket for covered services before insurance company pays.
Your Coinsurance – The Amount You Pay after Deductible
Your coinsurance is the percentage of medical cost you are required to pay after your annual deductible is met. For example, the health insurance plan may cover 80% of charges for a covered surgery, leaving you responsible for the other 20%. The 20 percent you must pay is called the coinsurnace
Tomorrow we will cover “Out-of-Pocket Maximums”