Obamacare: Deductible, Copay and Coinsurance Explained
There are a lot of different types of healthcare insurance out there, but the most common type is a deductible. Deductibles are often set at $1,000 or more and usually have to be met before you start receiving reimbursement from your insurance company. Then, you might need to pay copays for some services as well as coinsurance on some drugs. But what’s the difference Deductible vs copay vs coinsurance?
The biggest difference between deductibles, co-pays and coinsurance is that deductibles are an amount you have to pay out of pocket before your insurance starts kicking in. Co-pays are a set amount you have to pay for every service, while coinsurance is the percentage of the cost of a drug or procedure that you have to pay.
So which should you be paying attention to? Probably all of them! Your best bet is to sit down with an insurance agent and figure out what kind of coverage will work best for you and your family.
For example, if you need a lot of prescription drugs, you might want to go with a plan that has lower co-pays. But if you rarely need medical care, you could save money by choosing a plan with a higher deductible. It really depends on your individual needs.
On the other hand, if you or a family member has pre-existing conditions, it might be smart to choose the lowest deductible possible. Even with insurance companies not being allowed to discriminate based on medical history anymore, plans that have lower deductibles are often more expensive because they include coverage for more procedures and medications.
This is why most people use an online health insurance quote tool before choosing a plan so they can compare different types of policies side by side without having to wade through pages of fine print about things like co-pays and coinsurance. You may also want to talk with your employer’s human resources department if they offer any options in terms of healthcare benefits packages as well since there could be cheaper plans available from them than from other sources!