A low monthly premium can make a health insurance plan look like a great deal. Understanding what you’ll pay when you need care helps you see whether that plan fits your budget.

Your premium is the payment that keeps your coverage active. Your total healthcare expenses may also include a deductible, co-payments, and coinsurance. These costs can make a meaningful difference over the course of a year.

Your deductible is what you pay for certain covered services before your plan begins sharing those costs. Some services may be covered before you meet it. A copayment is a fixed amount for a covered service, while coinsurance is a percentage of the covered cost.

For example, a hypothetical plan costing $300 a month saves $1,200 annually in premiums compared with a $400 monthly plan. However, higher deductibles or charges for care could use up those savings if you need frequent appointments, ongoing prescriptions, or surgery.

Also review the out-of-pocket maximum, which generally limits your share of costs for covered, in-network care during the plan year. Premiums, noncovered services, and certain out-of-network expenses fall outside that limit.

Before choosing coverage, check whether your doctors and hospitals participate in the exact plan and how your prescriptions are covered. Consider both your expected healthcare needs and what you could afford if something unexpected happened.

Watch the video below for a simple explanation of these costs and how to compare your options.
 At Margie Cummings Insurance, we help individuals, families, and business owners understand their health insurance choices. Contact us for help finding coverage that fits your needs and budget.

You have questions, we have answers. Contact Margie today.

CA Insurance License #0B27034. General educational information only. Benefits, costs, exclusions, and limitations vary by plan. Review plan documents for details.