Health Insurance Overview

In the simplest form, health insurance is a product that provides coverage for medical expenses. Services from preventive care up to doctors’ visits and emergencies are all covered under health insurance. Even though some of the costs are covered, there will still be a remaining balance paid for medical care. This is often referred to as your out-of-pocket expenses. With most plans, you will have a limit to what you can be charged in a given year called your out-of-pocket limit. Once you break this threshold, then your portion of the expenses drops to zero.

When paying for health insurance, you will normally see costs come in the form of either premiums, deductibles, copayments, or coinsurance. Below is a breakdown of these costs and the reason they are being charged:

  • Premium – Monthly bill that is charged to you in return for access to a health insurance plan. Typically, the lower the premium payment, the more you may have to pay in out-of-pocket expenses.
  • Deductible – Often seen as the amount you need to pay for medical services out-of-pocket before health insurance kicks in. Even after you meet the deductible, it is still likely that you will be responsible for paying copays and coinsurance until reaching the out-of-pocket max.
  • Copayment – Usually billed to you in the form of a fixed amount for a specified service or medication. These expenses will be required until you reach the maximum out-of-pocket amount.
  • Coinsurance – Dissimilar to copayments, coinsurance isn’t a fixed rate and is charged at a percentage of the cost for services.

Understanding Health Insurance

In general, medical and healthcare in the United States are too expensive for most people to pay for out-of-pocket expenses. Many studies have found that medical bills are one of the biggest leading causes of consumer debt and bankruptcy. Now that we have established health insurance is a necessity, let’s take a closer look at a few examples of different situations where you might be changing or adding insurance:

  • Family Insurance – Buying insurance for your entire family is smart, but there are a few things to keep in mind when buying. For example, plans may have a family deductible and individual deductibles.
  • Young Adults Under 26 – For anyone who is 26 years old or younger, you can stay on your parent’s health insurance plan. Other options include getting insurance through your university or employer.
  • Self-Employed – Recently, new entrepreneurs may qualify for COBRA insurance if they just left a full-time job with benefits. If not, the open marketplace has enrollment periods that will allow you to sign up for coverage.

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John Kyle Insurance – An Agency You Can Rely On

The amount of health insurance options you have to choose from can be overwhelming. Deciding whether to go with a plan that makes you stay in a network as opposed to one that provides coverage throughout the country can be complicated when you start looking at prices. That’s why it is best to sit down with a licensed agent and discuss all the options you qualify for. John Kyle Insurance offers a free consultation period where we will walk you through the process of deciding which plan works best for you and your family. To get started, give us a call today at (440) 230-1223.