Buying Health Insurance, What to Look For

health insurance graphicHealth Insurance policies can seem terribly confusing.  How do you tell a good policy from a bad one?  How do you know if your policy is quality or not?  How can you tell if your rates are fair?

This post will answer those questions and more.

Let’s start with some terminology.

An important aspect of any health insurance policy is the deductible.   The deductible is the amount you pay before the insurance benefits kick in.

In other words, if you need surgery and have a $500 deductible, you will pay $500 of the fee, then the insurance will take effect from there.

If you have a $5,0000, you have to pay $5,000 before any benefits start.

The amount of your premium is directly related to the amount of your deductible.  If you have a high deductible like $5,000, then your premiums will be less but once you need actual care, you will pay a lot more.

Another important term to understand is co-pay.  Co-pay refers to the amount you pay at the time of service.  If your co-pay is $20, you pay the doctor $20 on the day of your visit, they bill the insurance company for the rest.  The amount actually paid by the insurance company depends on the precise coverage you have.

 

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