Understanding Health Insurance: Definitions

To navigate the complexities of health insurance, it's important to understand key terms. Premiums are the monthly costs of a health plan, while copays are set dollar amounts paid for specific services. Deductibles are the out-of-pocket amounts before the insurance starts coverage, and out-of-pocket maximums are the ceiling for personal expenses. Co-insurance is when the policyholder pays a percentage of the bill, and preventive care is usually covered with no out-of-pocket costs. These definitions help clarify the upfront and ongoing costs of health insurance.