Health insurance can be complicated! Since there are only a few specified times to enroll, here are a few definitions to help you find the affordable coverage you need:
1. Premium: The upfront amount you’ll pay each month to keep your health insurance.
2. Deductible: The amount you’ll pay for healthcare services before your insurance kicks in to help.
3. Co-payment: Also called a co-pay. This is a flat amount you’ll pay for specific medication or services, even if you’ve reached your deductible.
4. Co-insurance:Â Unlike a copay, which is a flat amount, coinsurance is a fee you pay that is a percentage of the cost of a covered service.
5. Out-of-pocket maximum: This the the maximum amount you’ll pay for covered health services in a single year. This includes your deductible, copay, and co-insurance. In 2018, the out-of-pocket maximum was $6,650 for individuals and $13,300 for families.
6. Subsidy: This is the government's way of helping you pay for your health insurance coverage. The Affordable Care Act technically provides three different subsidy types: advance premium tax credits, cost-sharing reductions, and Medicaid.
With this knowledge, you'll be ready to navigate the basics of any insurance plan!