Health Insurance Basics

Payments You Might Make Over a Year.

Over the course of a year, there are several different types of healthcare payments that you might make*.



Premium:
This is the amount of money that keeps your health insurance active. You’ll pay your premium once a month, all year long.

Copay:
The set amount of money you pay at the time of certain medical services, such as doctor visits or picking up prescriptions.





Deductible:
The fixed amount of money that you are responsible for paying before your insurance starts to pay. Whether or not you meet your deductible depends on how much healthcare you need throughout the year.

Coinsurance:
The portion of your medical bill you pay, for certain services, after you meet your deductible. Think of coinsurance as splitting your healthcare costs with your insurance company.





Out-of-Pocket Maximum:
The total amount you’ll spend for healthcare, after which the insurance company pays for all your medical care until the year ends.

*How much you pay and whether or not you reach each step will depend on your specific plan and conditions.