Health Insurance Terms

Typically with private health insurance plans, you pay a monthly charge directly to the insurance company, which is called a premium.

When you show up for your doctor's appointment, you may be required to pay a copayment (copay). The copay is usually a flat fee that the health insurer requires you to pay for a doctor visit. The amount of the copay may be listed on your insurance card.

After your appointment, you may be charged a deductible and/or a coinsurance.

A deductible is the amount that you are responsible for paying for your healthcare expenses before the health insurer will pay. Of note, your copay does not count toward your deductible.

Coinsurance is a percentage of the total costs that the health insurer requires you to pay.

Please check back next week for more health insurance information - FSAs vs. HSAs.