Health insurance terms you should know before choosing your coverage

Choosing health insurance is never easy, but understanding some terminology you might encounter can make it easier to understand. The choice you make determines the coverage you will have for the next 12 months. A wrong choice could be difficult to live with. At Green Family Insurance Inc. in Illinois, we are an independently owned insurance agency. Our passion is helping our customers to find the insurance products they need.  

Here are a few of the health terms you should understand:

  • Deductible– The deductible is the amount you will need to pay every year before your health care starts to pay for services. High deductible health insurance policies are more affordable than lower deductible policies, but they can leave you with very little coverage for routine services. 
  • HSA– An HSA is a health saving account. This allows you to save an amount each year, determined by the IRS, tax-free toward your health care expenses. It is the perfect complement to a high deductible health insurance policy. 
  • Copay– A copay is your portion of any covered service. Once the deductible is met, and the health insurance starts covering services. 
  • Out-of-pocket limit- This is the most you will pay for health care services in any given year. This is an important figure, especially if you have a catastrophic illness that requires an extended stay in the hospital. Just a few days with tests can run you many thousands of dollars. 
  • Network– The network is a group of health care providers who have contracted with a health insurance plan to provide services to its members at an agreed-upon price. Most healthcare plans have their own network. Making sure the one you choose includes your doctor is an important part of choosing your health insurance plan. 

Contact Green Family Insurance Inc. in Illinois with your health insurance questions.