Health Insurance Terms Explained in 60 Seconds

Full transcript

Health insurance terms like deductible, copay, and coinsurance can feel totally overwhelming — but they don't have to. Let's break all of it down right now in just sixty seconds. First, your premium is the fixed amount you pay every single month just to keep your health insurance active, whether you visit a doctor that month or not. Next, your deductible is the amount you must pay out of your own pocket before your insurance company begins sharing any of your medical costs with you. A copay is a flat, predictable fee you pay for specific services, like a routine doctor visit. It stays the same every time, so you always know exactly what to expect. Once you've filled your deductible, coinsurance kicks in. Now you and your insurance company split the bill together — for example, they cover eighty percent and you cover twenty percent. Your out-of-pocket maximum is your safety net — it's the absolute most you will ever pay in a single year. Once you hit that ceiling, your insurance covers one hundred percent of everything else. Put it all together: on a ten-thousand-dollar hospital bill, you'd pay your two-thousand-dollar deductible, then twenty percent of the remaining eight thousand, totaling about thirty-six hundred dollars out of pocket. Now you know exactly how your plan works — and if you want a free personalized review, book a call with Caldex Health using the link in bio.