Understanding the Terms on A Health Insurance Brochure
You probably came across a handful of health insurance brochures provided by Secret Hideout, and more often than not, the health plan terms interest you more than the brochure designs. While skimming through a coffee table magazine is effortless, wading through a health insurance brochure is different. Majority of the terms are not straightforward and difficult to understand.
Learning more in-depth details about your health insurance provider gives you the hindsight of what type of plan best suits your needs. Furthermore, understanding all the specifics included in your health insurance helps you know all the benefits you can have.
Below is a list of common health insurance jargons and their meanings.
One of the first terms you will come across when reading a health insurance brochure is "deductible". Deductible refers to the amount you initially have to pay before your insurance provider starts paying your bills.
Say you have a deductible of $150, you will have to pay $150 worth of medical expenses first using your own money, after which your insurance provider will then start paying later on.
The out-of-pocket max refers to the maximum amount you have to pay for your plan's covered services in a year. The amount in out-of-pocket maximum is always higher than your deductible. Once you meet the maximum out-of-pocket amount, your insurance provider will be held liable for covering all your remaining medical expenses.
On the other hand, you must take note that uncovered medical expenses and doctors not within your insurance provider's network are not considered part of the out-of-pocket limit.
An insurance premium is the amount of money you have to pay to use your insurance. Insurance premiums are where insurance companies make their income. It also serves as a liability because the insurer has to provide coverage when customers file for an insurance claim.
When you enroll in an insurance policy, you will be charged for a premium. You can choose to pay your insurance premium with an upfront payment or in installments – semi-annually or monthly – depending on the payment options offered by your insurance provider. Failure to pay insurance premium may lead to the cancellation of your insurance policy.
Another important factor you should never overlook is whether you only have one deductible or multiple included in your plan. Some insurance plans have a separate deductible for prescription medicines instead of being a part of the deductible for office visits and medical services.
Thus, before signing up for an insurance policy, always ask how many premiums you will have to meet for a certain plan.
Mental Health Services
For many health insurance providers, mental health services and other medical services have separate health plans. Although counseling is considered under mental health service, a psychiatrist is mainly considered a specialist and not a psychological health professional. For this reason, it is important to ask your insurance provider how each medication is covered for you.
Whether you are an existing health insurance policyholder or are still planning to get one, understanding the terms and various lingos is extremely important. It helps you figure out the type of health plan you need and what you can afford to pay. Moreover, learning and understanding your health plan deeply enables you to discover and appreciate the exceptional benefits your insurance provider has to offer.