Individual and group health insurance plans have been the focus of much discussion as the Affordable Care Act begins to be fully implemented. No matter how you get your health insurance, you should understand exactly what you are buying. A basic understanding of common insurance terms will allow you to evaluate the different individual and group health insurance policies that are available in Southern California.
Your “co-pay” is a fixed dollar amount you have to pay out of pocket when you visit a doctor or purchase prescription drugs.
Your “deductible” is the amount you must pay before your insurance will take effect. While a high deductible will usually mean a lower premium, a low deductible will mean that you have a lower threshold to meet.
“Coinsurance” is a percentage of the total cost you are responsible for paying, usually after your deductible has been met.
If you become ill or are injured and spend a few days in the hospital, you can easily run-up $20,000 or more in hospital and doctor bills. Check your policy to see what the “out of pocket maximum” is before you purchase health insurance.
Do you have the insurance you need? Do you know someone who lost everything because disaster struck and they did not have insurance? Life is unpredictable. You should always hope for the best and prepare for the worst. Insurance is there when life throws you a curve.
Stacy My Insurance Lady is an independent insurance agent who has been helping Southern California residents with their insurance needs for more than a decade. For more information about individual and group health insurance, Covered California, disability insurance, or life insurance, please call Stacy My Insurance Lady.