FAQ

Health insurance policies typically function by providing coverage for a range of medical services in exchange for regular premium payments. When you have a health insurance policy, you contribute a set amount each month to maintain coverage. In return, the insurance company agrees to pay a portion or the entirety of your medical expenses, depending on the terms of your policy.

• Deductible: The deductible is the amount you must pay out of pocket for covered medical expenses before your insurance plan starts to contribute. For example, if your plan has a $1,000 deductible, you are responsible for paying the first $1,000 of covered medical expenses before your insurance coverage kicks in.
• Premium: The premium is the amount you pay regularly (monthly, quarterly, or annually) to maintain your health insurance coverage. It is a fixed cost regardless of whether you use medical services or not.
• Copayment (Copay): A copayment is a fixed amount you pay for a specific healthcare service or prescription medication. For example, your plan may require a $20 copay for doctor visits or a $10 copay for generic medications. The insurance company covers the remaining cost.
• Coinsurance: Coinsurance is the percentage of the cost of a covered service that you are responsible for paying after you have met your deductible. For instance, if your plan has a 20% coinsurance, you would pay 20% of the cost, and the insurance company would cover the remaining 80%.
• Out-of-Pocket Maximum (OOPM): The out-of-pocket maximum is the maximum amount you are required to pay for covered medical expenses in a given year. Once you reach this limit, your insurance plan covers 100% of the remaining costs. It includes deductibles, copayments, and coinsurance, but usually excludes premiums.
• Network: A network refers to a group of healthcare providers, hospitals, and facilities that have agreements with an insurance company to provide services at negotiated rates. In-network providers often have lower out-of-pocket costs for policyholders compared to out-of-network providers.
• Preauthorization: Some health insurance plans require preauthorization, which means obtaining approval from the insurance company before certain medical services or procedures are performed. Failure to obtain preauthorization for certain services may result in reduced coverage or denial of payment.
• Exclusions and Limitations: Health insurance plans often have specific exclusions and limitations, which are services or treatments that are not covered by the policy. These can include cosmetic procedures, alternative therapies, or certain elective surgeries. It's important to review these to understand what is not covered by your plan.
• Explanation of Benefits (EOB): An EOB is a statement or document provided by the insurance company that explains how a claim was processed. It details the services rendered, the amount billed, the covered amount, and the portion for which you are responsible. Reviewing the EOB helps ensure accurate billing and understand your financial obligations.
• Health Savings Account (HSA) or Flexible Spending Account (FSA): Some health insurance plans may offer these accounts that allow you to set aside pre-tax funds for eligible medical expenses. HSAs are typically paired with high-deductible health plans and offer tax advantages, while FSAs are funded through pre-tax payroll deductions and have certain contribution limits.

Health Maintenance Organization (HMO): HMOs offer a network of healthcare providers with whom the insurance company has contracted. You typically choose a primary care physician (PCP) who coordinates your healthcare and provides referrals to specialists when needed.

Preferred Provider Organization (PPO): PPOs provide a broader network of healthcare providers compared to HMOs. You have the flexibility to visit both in-network and out-of-network providers without needing a referral from a PCP.

Exclusive Provider Organization (EPO): EPOs are similar to PPOs in terms of flexibility, but they do not cover out-of-network services, except in emergencies. EPOs often offer lower premiums compared to PPOs.

Point of Service (POS): POS plans combine features of HMOs and PPOs. You choose a primary care physician who oversees your care and provides referrals to specialists within the network. You may have the option to seek care outside the network, but with higher cost-sharing.

High-Deductible Health Plan (HDHP): HDHPs can be associated with any network type (HMO, PPO, or EPO) and are characterized by higher deductibles and lower premiums. These plans are often paired with a Health Savings Account (HSA) and require you to pay more out of pocket before insurance coverage kicks in.

Assess your healthcare needs: Determine your specific healthcare requirements, including medications, preferred doctors, and any ongoing medical conditions.

Evaluate plan types: Understand the different types of plans available, such as HMOs, PPOs, EPOs, or POS plans, and consider their network restrictions and provider choices.

Review coverage details: Carefully examine the coverage provided by each plan, ensuring it aligns with your needs, including preventive care, prescription medications, and specialist consultations.

Consider costs: Compare premiums, deductibles, copayments, and coinsurance to determine which plan fits your budget and financial situation.

Assess network providers: Check if your preferred healthcare providers are in-network, as this affects access to care and costs.

Review prescription drug coverage: Examine the plans' formularies to ensure your medications are covered at reasonable costs.

Consider additional benefits: Evaluate any extra benefits offered, such as dental or vision coverage, that may be relevant to your needs.

Seek expert advice: If needed, consult health insurance brokers or professionals for personalized guidance.

In most cases, the open enrollment period is the designated time when individuals can enroll in or make changes to their health insurance plans. However, there are certain circumstances that may qualify for a special enrollment period, such as losing existing coverage, getting married, having a baby, or experiencing other qualifying life events. Outside of these special enrollment periods, purchasing health insurance may be limited, unless you qualify for government programs or have certain exceptions.