When faced with a decision to choose a healthcare plan, or trying to understand the benefits of your existing plan the terms can become quite confusing. Having a better understanding of the most common terms will be helpful when making a selection.

Most of us want to know what the plan will cost on a monthly basis. This is called the premium. The premium is the fee paid monthly in order to maintain your medical coverage.

The copay is usually next on the list of questions asked when comparing coverages. A copay is the amount you will pay at the healthcare provider’s office when being treated. The copay for General Pactitioners, Urgent Care Facilities, Specialists, Prescriptions or Emergency Room visits can vary and should be listed seperately. These benefits should be visible on your Insurance ID card.

Some plans have a deductible. A deductible is the amount each individual is required to pay out of pocket before the insurance company begins to contribute to the medical costs. A high deductible will save you money when shopping for the lowest monthly premium. When you are paying for your medical services, you will only pay the pre- negotiated rate. This is the rate already agreed upon by the provider and the insurance company. Usually less than an uninsured person would pay.

When considering the price of an office visit, this is the amount or percentage of the total claim. In some cases you will only have to pay a percentage of this amount before meeting your deductible, and this is pre-negotiated by the provider and insurance company.

Out of pocket maximum is the most you will have to pay out of pocket annually. Once you reach this amount the insurance company will pay the rest of your medical expenses. IN some cases the deductible is included in this amount and not in others. It is important to understand this. This includes all copays as well as other percentages you are responsible for annually.

A lifetime maximum is the most your insurance company will be responsible for. Most policies offer a high lifetime maximum;millions usually. This is the most your insurance company will pay for your entire lifetime. In some situations involving multiple surgeries and treatments this number can be reached in a very short time.

There are so many factors to consider when selecting health insurance and so many confusing terms that apply. To avoid any surprises, it is important to have a complete understanding of the language and all of the coverages before making a final selection.

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