Health care answers in 60 seconds.
What are health care premiums, deductibles, coinsurance, and copays?
To better understand these terms, think of it like owning a car.
A premium is like your monthly car payment.
You must make regular payments to keep your car, just as you must pay your premium to keep your health care plan active.
A deductible is the amount you pay for coverage services before your health plan kicks in.
After you meet your deductible, you pay a percentage of health care expenses known as coinsurance.
It's like when friends in a carpool cover a portion of the gas, and you, the driver, also pay a portion.
A copay is like paying for repairs when something goes wrong.
When your car gets serviced, you pay a set fee to the mechanic, just as you may pay a set fee, like $20, when you go to the doctor because you're sick.
Every plan is different, so premiums, deductibles, coinsurance, and copays can vary in cost.
Health care question answered.