Healthcare can be a costly affair, so understanding how to pay for health coverage and things like visits to the doctor essentially become a matter of financial literacy.One survey by PolicyGenius in 2016 found that only 4% of Americans could successfully define four key terms related to health insurance ("deductible", "co-pay", "co-insurance", and "out-of-pocket maximum").This newsletter is all about guiding you through the complexities of the healthcare system. One way we measure the effectiveness of health interventions is expenses, and if the details about how a member pays for their health plan is not fully understood, then we can't even begin to assess the impact of the health care system's structure on the average person's wallet.So for today, let's go over some crucial health insurance terms. More specifically, I'm going to walk you through what a premium, deductible, co-pay, co-insurance, and out-of-pocket maximum are.
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How are Health Plans Paid For
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Healthcare can be a costly affair, so understanding how to pay for health coverage and things like visits to the doctor essentially become a matter of financial literacy.One survey by PolicyGenius in 2016 found that only 4% of Americans could successfully define four key terms related to health insurance ("deductible", "co-pay", "co-insurance", and "out-of-pocket maximum").This newsletter is all about guiding you through the complexities of the healthcare system. One way we measure the effectiveness of health interventions is expenses, and if the details about how a member pays for their health plan is not fully understood, then we can't even begin to assess the impact of the health care system's structure on the average person's wallet.So for today, let's go over some crucial health insurance terms. More specifically, I'm going to walk you through what a premium, deductible, co-pay, co-insurance, and out-of-pocket maximum are.