In addition to the
monthly premium, there are several other costs associated with
major medical insurance coverage that you should understand.
The first cost you'll encounter is the deductible. The
deductible is a pre-arranged dollar figure that you'll have to
satisfy before the health insurance company begins to contribute
any money to your health care costs.
Your deductible can be a significant out-of-pocket expense,
particularly because it must be satisfied each year before the
company pays. (So paying $1000 this year for medical services
will not decrease your deductible next year.)
Deductibles can range from a few hundred dollars to a few
thousand. Some health insurance policies do not have deductibles
ever and others have them only in certain cases.
The other expenses are co-payments and co-insurance. All medical
insurance policies will ask that you agree to one or both of
these charges. Co-insurance means you'll be required to pay a
certain percentage of your health care costs, and a co-payment
means you'll be required to pay a certain dollar figure for each
These are usually charged in addition to a deductible. However,
in either case, the medical insurance company should pay a
substantial amount (or percentage) in comparison to your
The point of having medical insurance is, after all, to
alleviate the financial burden on you and your family in case of
medical emergencies and/or chronic illness.
information from healthinsuranceindepth.com.
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