Health insurance companies use a lot of different terms to govern your contract. If you’re not familiar with any of them, receiving an explanation of benefits in the mail can be a bit confusing. If you’re looking for affordable health insurance in California, there are some terms that you should become familiar with in the process. Here are a few of them that will show up quite often on your insurance correspondence.
Deductible
The deductible for your health insurance plan is the amount that you pay before your insurance provider covers any service. This is considered a cost sharing program, and the amount that you have to pay can vary. This is primarily determined at the beginning of the contract, as most people are allowed to choose their deductible amount. Families have a larger deductible, while individuals could have a smaller one. It’s important to read this information thoroughly before you sign up with a carrier, as you will be stuck with this plan until the next open enrollment period.
Copay
Your insurance co-pay is the amount that you’ll pay directly to your provider each time you visit the doctor’s office. This is another cost sharing program built into the contract, and most people are fairly familiar with it. Your doctor will collect this portion up front, before they render any services to you. If you’re not sure how much your co-pay is, refer back to your contract. They may be different, depending on the type of service that you’re receiving.
Premium
When searching for an affordable health insurance in California, you want to pay close attention to the premium costs. This is the amount that you’ll pay every single month to your insurance carrier, and you’ll want this cost to be as low as possible. Premiums are determined by a number of things, including the amount of people that you carry on your plan. Also, healthy nonsmokers tend to pay less than people with recurring health conditions, and those that continue to smoke.
These are a few terms to keep in mind when you receive your explanation of benefits, and when you sign up for new coverage. You can find affordable health insurance in California, and knowing the insurance jargon can help you in the process.
If you’re not sure about the terms that you read on your EOB, or where to find affordable health insurance in California, there are resources available to you. Visit to get the help you need to pick the right plan.
