Health insurance provides you and your family affordable access to high-quality health care. Accidents and illness can happen without warning, and medical treatments can be expensive. Having health insurance means knowing many of your health expenses will be covered.
The deductible of a health insurance plan is the dollar amount that you must pay before your coverage kicks in. So if you had a deductible of $500, you would have to pay $500 of your medical bills before insurance started picking up the tab.
A Preferred Provider Organization, or PPO plan, is a kind of managed care. That means plan members have affordable access to an extensive network of doctors, hospitals, and other health care providers.
A copayment is the dollar amount of a medical bill that you are responsible for when you receive care. The best examples of a copayment are the amount you pay when you go to the doctor for a routine check up, or get a prescription filled at the pharmacy.
Coinsurance is the percentage of a medical bill that you’ll be responsible for when you receive medical care. A common coinsurance rate is 80/20, where you pay 20% of a medical bill and your insurance plan pays for 80%.
Health Savings Accounts, or HSAs, allow you to save money tax-free for almost any health care expense. Qualified HSA expenses include bandages, eyeglasses, medication, doctor’s office fees, medical services, and even your plan’s deductible.