Health insurance terms you need to understand

Choosing a health insurance plan is one of the most stressful things most people do every year. So much depends on getting it right. It could be the greatest insurance globally, but if the deductible is so high you never get it to cover anything, it doesn’t do you much good. It also has to be affordable because no one wants to be insurance-poor. At Affordable Insurance Inc in Mountain Home, AR, we have 25 years of experience providing the personal care all of our customers deserve and have come to expect. 


The deductible on a health insurance policy is the amount you must pay out of pocket before your health insurance coverage begins. High deductible policies can be very high and even mean nothing will get paid by your health insurance. Basically, it protects you from catastrophic illness or accidents. 


The copay is your portion of the covered service you receive. Your insurance pays the agreed-upon amount, and you pay a copay.  


These are health care savings accounts that allow you to put money into an account before paying taxes on them. The money can be used to pay the medical expenses you have in your deductible or copay. 


The network is the providers contracted with a particular carrier to provide services at an agreed-upon price. With most health insurance types, you either use specific services within the network or will get the best price for using other services outside the network. 


An HMO and a PPO are both types of managed care health insurance. The basic difference is in a PPO, you can go outside the network for services, but you will pay more. If you go outside the network in an HMO, the service will most times not be covered. 

Contact Affordable Insurance Inc in Mountain Home, AR, when you have health insurance questions.