Whether you are on a tight budget or not, understanding the costs of individual health insurance is a must if you want to know exactly how much you need to spend for you policy. Here is a guide to the basic costs of individual health plans policies.
Premiums
Similar to other types of insurance policies, individual health insurance policies come with premiums pr payments that you need to make usually on a monthly basis. Insurance companies consider several factors when determining your insurance premiums and these factors include your age, your gender, your overall health condition, your medical history, your lifestyle and your occupation. It is important for you to pay the monthly premiums if you want to make sure that your insurance coverage would always be in effect.
Deductible
This is the amount that you need to pay for on your own before the insurance company takes care of the rest of the costs of the claim. Generally, the higher your deductible is, the lower your premiums would be since agreeing to pay a higher deductible lowers your risk to the insurance company. Keep in mind, however, that you should not just automatically go for a policy which comes with a low premiums and a high deductible just so that you can save on your monthly individual health insurance expenses, as you would not want to end up.
Copayments and Coinsurance
Depending on the type of individual health insurance policy you would be getting, you may be required to pay copayments for doctor’s fees and routine examinations. For instance, there are some HMO plans which require policyholders to pay $15 for a routine examination conducted by their primary care physician. The $15 is the copayment amount. Coinsurance, on the other hand, is usually a percentage of what you and your insurance company need to pay for every claim or medical bill. For instance, if your policy has a coinsurance rate of 80/20, it would mean that you would need to pay 20 percent of the bill and the 80 percent would be paid for by your insurance carrier.
Before purchasing an individual health insurance plan in Florida or in the state you are in, make sure that you first understand the basic costs associated with individual health insurance. By understanding what these costs are, it would be much easier for you to determine which among your options offers the best value for the money that you would be spending.
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