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Health Insurance Terms to Know

September 01, 2018
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When it comes to health insurance, the more you know, the better. Here are a few terms you may not fully understand.

Allowed Amount

The maximum amount on which payment is based for covered services. You may be charged the difference if a provider charges more than this amount.

Deductible

The amount you have to pay for covered services before your plan begins to pay. Note that the deductible may not apply to all services.

Coinsurance

Your share of the cost of a covered service once you’ve met your deductible. It is usually a percentage of the allowed amount.

Copay/copayment

A fixed dollar amount you pay for a covered service, such as a doctor’s visit.

Out-of-pocket Limit

The maximum amount you will pay in a policy period, not counting your premium or amounts you pay for services the plan doesn’t cover.