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HomeHomework Helphealth-insuranceHealth Insurance Basics

Health Insurance Basics

The specific details and benefits of a health insurance policy, including policy limits, waiting periods, pre-existing conditions, exclusions, and additional benefits such as annual health check-ups, e-consultations, and discounts on renewal premiums

beginner
2 hours
Health Insurance
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Overview

Health insurance is a vital tool that helps individuals manage the costs of medical care. It provides financial protection against high medical expenses and ensures access to necessary healthcare services. Understanding key terms like premiums, deductibles, and copayments is essential for making inf...

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Key Terms

Premium
The amount you pay for your health insurance every month.

Example: You pay a premium of $200 each month for your health insurance.

Deductible
The amount you pay out-of-pocket before your insurance starts to pay.

Example: If your deductible is $1,000, you must pay that amount before coverage kicks in.

Copayment
A fixed amount you pay for a specific service, like a doctor's visit.

Example: You pay a $20 copayment for each visit to your primary care doctor.

Coinsurance
The percentage of costs you pay after meeting your deductible.

Example: If your coinsurance is 20%, you pay 20% of the bill after your deductible.

In-Network
Providers that have a contract with your insurance company to provide services at reduced rates.

Example: Visiting an in-network doctor usually costs less than going out-of-network.

Out-of-Network
Providers that do not have a contract with your insurance company.

Example: Using an out-of-network provider may result in higher costs.

Related Topics

Medicare
A federal health insurance program for people aged 65 and older, and some younger people with disabilities.
intermediate
Medicaid
A state and federal program that provides health coverage for low-income individuals and families.
intermediate
Health Savings Accounts (HSAs)
Tax-advantaged accounts that allow individuals to save for medical expenses.
intermediate

Key Concepts

premiumdeductiblecopaymentnetwork