Common health insurance terminology explained.
If you are not an insurance expert, then attempting to navigate the health insurance market can be a real challenge. To make matters worse, many people are confused by common health insurance terms. To help you make more sense of your health insurance and the market as a whole, here are some of the most common terms defined.
- 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.
- 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.
- 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
- 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.
- 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 most common health insurance terms defined for you. Do you have additional questions about your health insurance coverage? If so, contact the experts at Randy Jones Insurance Services in Pleasanton, California. Our dedicated team is eager to assist you with all your health insurance needs today.