Health Insurance Terms That You Should Know

Health insurance terminology that everyone should know.Health Insurance Terms That You Should Know

For the average person, engaging with the health insurance market can be a challenging experience.  To make matters worse, there are many confusing terms that make managing your health coverage even more confusing.  To help you understand your health coverage, here are the definitions of some of the most important health insurance terms.

  1. PPO– Preferred Provider Organization; refers to a health plan that encourages you to use a network of doctors and hospitals for your healthcare services. Seeing medical professionals outside of your network will result in higher out-of-pocket payments.
  2. HMO– Health Maintenance Organization; these plans have their own network of doctors, hospitals, and other healthcare providers. HMOs offer coverage for lower premiums but limit your choices as they will not cover any out-of-network care.
  3. Indemnity– health plans that allow you to direct your own healthcare and choose the doctors and hospitals that you want. The plan will cover a predetermined percentage of your total health care costs
  4. Copayment– flat dollar amount that you will pay your health care provider for a covered service. For instance, you could have a copayment of $30 for every visit to your primary care doctor and a $10 payment for every prescription filled.
  5. Coinsurance– the percentage of charges for covered services that you are required to pay. For instance, your insurance may cover 80% of the costs associated with a hospital stay, leaving you responsible for paying the remaining 20%.

These are some of the health insurance terms that you should know.  Do you have further questions regarding your health coverage needs?  If so, then contact the experts at Miller Carlisle Insurance Services.  We are ready to assist you with all your personal insurance needs today.