Knowing The Language Of Health Insurance

If you visit a foreign country, you cannot function properly unless you understand the language. So also it is with insurance. You need to understand the language and terms used so that you will not be disappointed when you need to fall back on it. Here are a few of the terms used and their meanings: 1. Deductible. This is the minimum amount you must pay for your medical expenses before your policy kicks in. Deductibles are made annually. For example, if the average cost of your cover per annum is $250, you must pay that amount from your pocket before the insurance company starts paying. 2. Allowable fee. This is the maximum amount an insurer would pay for a medical procedure. 3. Fee-For-Service (FFS) Plan. This is the type of health plan that allows you to choose your own specialist or doctor. FFS Plans involves payment of deductibles and co-insurance or co-payments. 4. Flexible Spending Account. This account helps the user to pay for medical expenses that are not covered by insurance like deductibles and co-payments. 5. Co-Payment. Some insurance plans require that you pay a fixed sum for covered medical services. For example you may need to pay either $10 or $20 for each visit to the doctor. Costlier medical procedures require higher co-payments. 6. Co-Insurance. Some insurance companies require that the policy holder pay a certain percentage of the cost of covered medical services. It is usually between 20 and 30%. For example your insurance company would pay 80% and you pay 20% or 70% and 30% respectively. 7. Schedule of Allowance is the sum your policy covers for each medical procedures. 8. Supplemental insurance. This is the extra plan that you can obtain in conjunction with your main insurance plan. This would cover for things like dental care, prescriptions and vision plan that are excluded from the basic health plan. Here are great pages for health insurance quotes...