Okay, we know what you’re thinking. Health insurance is difficult to understand. It is difficult to sort through available health insurance kona hawaii and determine which is right for you. Knowing the terms used by the industry can help you make a more informed decision when choosing insurance, whether it be on your own, through your job, or even through a marketplace. Let’s get started by reviewing the most common terms and what it means for your policy.

Deductible

The most common term is deductible. This is the amount of money that you have to pay before your insurance will start to pay. However, there is a catch. Your insurance might cover some services before the deductible is met. For example, your policy might include a free annual visit. This is called an annual wellness check and is usually 100% covered, depending on the insurance.

Coinsurance

Coinsurance, as it implies, is an effort between you and the insurer. Once you've met the deductible, you and your insurance company end up sharing costs. You will share the cost until you've reached the out-of-pocket maximum. Review your policy so that you know just how much your coinsurance is. Also, verify the cost of services before having them done; you’ll thank us later for that one.

Out-of-Pocket Maximum

The most money you will spend on your health care expenses in a year will be the out-of-pocket maximum. We highly recommend that when looking for new insurance, you give this some consideration. The last thing you want to do is spend $10,000 out of pocket when you wouldn't have to. Sometimes a lower out-of-pocket maximum is better than having a lower deductible. Sometimes there's not that much of a gap between the two.

Think of the out-of-pocket maximum as your insurance safety net. It's the maximum amount you'll pay for covered medical expenses in a year. Once you hit this limit, your insurer takes over and covers 100% of eligible medical costs. Phew, no more worries about unexpected expenses!

Network

Ah, the network – the circle of healthcare facilities and providers that work together to provide you with the best care possible. Your insurance plan will have a network of healthcare providers, including doctors, hospitals, and clinics. Visiting providers within your network usually means lower costs, while going out-of-network can result in higher expenses.

Preauthorization

Preauthorization is like asking for permission before getting something. Some medical services require preauthorization from your insurer to ensure they're necessary and covered. It's always a good idea to check with your insurer before major medical procedures to avoid unexpected surprises.