Q: How much will my policy cost me?
A: The answer is more complicated than you might think. The most prominent feature of any policy is the premium – the amount you pay (usually monthly) to a health insurance company for your policy. Every plan is different, so it is also important to understand how much you will have to pay when you get services. These costs can include:
- Deductible — how much you pay before your insurance coverage begins.
- Copay/Coinsurance — how much you pay for services after the deductible is met.
- Out-of-Pocket Maximum — the most you will have to pay for your coverage during your policy period (usually one year) before your health insurance company begins to pay 100 percent of the allowed amount. Depending on your plan, this amount may or may not include premiums.
Q: What is the difference between a copay and coinsurance?
A: Copay is the dollar amount you may be required to pay as your share of the cost for a medical service or supply. A copay is usually a set amount, rather than a percentage. For example, you might pay $10 copay for a primary care office visit. Coinsurance is usually a percentage. It is the amount you may be required to pay as your share of the cost for services or prescription drugs. For example, you might pay 20 percent of the cost for a specialist visit.
Q: What are the different types of plans and network restrictions?
A: Traditional HMOs (Health Maintenance Organizations) and EPOs (Exclusive Provider Organizations) may restrict coverage to providers outside their networks. If you see a doctor or specialist that isn’t in the network, you will likely have to pay the full cost of services provided. PPOs (Preferred Provider Organizations) or POSs (Point-of-Service Plans) give you a choice of getting care within or outside of the provider network, although the copay or coinsurance may vary if the care is out-of-network. FFSs (Fee-for-Service Plans) usually don’t have networks.