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Understanding Health Insurance

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Understanding Health Insurance

Understanding health insurance can be tricky! As we approach open enrollment, it’s important to understand which type of plan will best suit you and your needs. For the sake of clarity, let’s start off by defining a few terms:

Deductibles: Deductibles are the amount of money you have to pay toward your health care before your coverage kicks in. They can vary from a few hundred to thousands of dollars, depending on the policy. Some plans don’t actually have deductibles.

Coinsurance: Once you meet your yearly deductible, your insurance company requires you to pay coinsurance until you meet your out-of-pocket limit. Once this is met, your insurance will pay 100% of the medical services included in your plan.

Premiums: Premiums are the monthly fees associated with your insurance plan. Regardless of if you’ve met your deductible or out-of-pocket limit, you are responsible for your monthly premium.

When selecting a health insurance plan, it’s important to remember that there are many types of plans that vary in deductible and premium amounts. A higher deductible means that you are responsible for a greater amount of your healthcare costs up front. Typically, high deductible plans save an insurance company money, so they come with a lower premium. High-deductible plans make sense for healthy young people! Lower deductible plans are less expensive on a monthly basis. They are recommended for those that may have chronic illnesses or a possible hospitalization. Lower deductible plans may also be a good choice for families with young kids.

It’s important to do your research and calculate which plan will provide the most effective and cost-beneficial plan for you and your family. For more information, visit: www.healthcare.gov

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In observance of the Thanksgiving holiday, Sensenbrenner Primary Care will be closed Thursday and Friday, Nov 24th & 25th. See you all again on Monday, Nov 28th!

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