Insurances

Insurance: Insurance is a financial arrangement where you pay a company (an insurance provider) a certain amount of money (premium) regularly. In return, the insurance company promises to help cover specific costs if you have an accident, get sick, or need medical care. The idea is to protect you from having to pay all those costs out of your own pocket.

 

Copayment: A copayment, often called a "copay," is a fixed amount of money you pay each time you receive medical services or fill a prescription. For example, your health insurance plan might require you to pay $20 every time you visit a doctor, regardless of the total cost of the visit. Copayments are typically small compared to the total cost of the service or medication.

 

Deductible: A deductible is the amount of money you have to pay for medical expenses each year before your health insurance starts to pay. For instance, if your health insurance plan has a $1,000 deductible, you'll have to pay the first $1,000 of covered medical expenses yourself. After you've paid that amount, your insurance will usually start covering part or all of the costs, depending on your plan.

 

Coinsurance: Coinsurance is the percentage of costs of a covered health care service that you are required to pay after you've met your deductible. For example, if your health insurance plan has a coinsurance of 20% for hospital visits, and your bill is $1,000, you would pay $200 (20% of $1,000) while your insurance would cover the remaining $800.

 

In summary:

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• Insurance helps cover costs if you get sick or injured.

• Copayment is a fixed amount you pay each time you use a medical service.

• Deductible is the amount you pay out-of-pocket before your insurance starts to pay.

• Coinsurance is the percentage of costs you pay after you've paid your deductible.