Family Health Insurance

Understanding Family Health Insurance

Many people are a little stressed when they find out they will need to switch from an individual health plan to a family health insurance plan. However, even though it seems like a big switch, the differences between the two plans are minimal. One noticeable variance in the plans is that there will be dependents on the policy now. Another is the way that some of the costs are calculated. Plans tend to have higher premiums and deductibles since there are more people that the policy has to cover. As a general rule, you will likely spend double on deductibles and out-of-pocket maximums than you would for an individual plan.

Family Health Insurance – Costs and Coverage

The coverage for family health insurance plans is similar to plans for individuals in the services they cover. Where the main difference between the two is noticeable is the cost of medical care and prescription drugs. On average, for family health insurance per month, the cost is $1,200. Many people might be taken back at first by the number, but several factors go into the plan’s price. Some of these include your location, size of your family, and the level of coverage you are looking to obtain.

Another common expense that comes with family health insurance is deductibles. It is important to review the deductible for each policy before deciding on one as it will determine how much you have to pay out-of-pocket before health insurance begins paying. After breaking this threshold, the insurance is likely to continue paying for all covered care for the remainder of the year. Opposite from individual plans, family health insurance policies tend to have two deductibles. Having both an individual deductible and a family deductible in the same plan is common.

Other typical expenses consist of copayments and coinsurance, similar to other types of insurance. With copayments, there will be a fixed rate that is required of the beneficiary to pay for specific services. Instead of a flat rate, coinsurance costs are percentages of the expenses incurred from medical providers and facilities that must be paid. Once you meet your out-of-pocket maximum, you will no longer have to pay coinsurance, but may still have copayments.

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Buying insurance for yourself can be stressful, but buying for your kids and spouse can be even more daunting. Our experienced agents are here to help answer any questions you might have or walk with you through the buying process. With our free consultation, we will take the time to get to know you and understand your future goals. To get started, give us a call today at (440) 230-1223.