Health Insurance Terms101: Breaking Down 10 Complicated Words

Health insurance has its own complex lexicon, which can often be quite perplexing. But fear not—at HBW Insurance Group serving Columbia, MD, we aim to simplify these terms for you. We’ve selected ten common insurance terms to explain.

Insurance Glossary

  • Coinsurance: Once you’ve met your deductible, this is the portion of your healthcare costs you are responsible for paying.
  • CoPay: A fixed amount you pay for certain healthcare services or medication, with your insurance covering the balance.
  • Deductible: The amount you must pay out-of-pocket before your insurance begins to contribute.
  • Premium: A regular payment, typically paid monthly, to maintain your health insurance policy.
  • Enrollment Period: The specific time window during which you can sign up for or amend your healthcare plan.
  • Out-of-Pocket Costs: These are expenditures that an insurance company does not refund, such as co-payments and deductibles.
  • Health Savings Account (HSA): An account specifically for covering medical expenses, such as visits to doctors, co-payments, deductibles, etc.
  • Health Maintenance Organization (HMO): This type of insurance program has contracts with specific hospitals, doctors, and healthcare specialists, usually meaning lower costs for you.
  • In-Network: This refers to healthcare providers with a contract with your health insurance provider, often leading to discounted service rates.
  • Preferred Provider: A healthcare provider contracted by your insurance company to provide services at a reduced cost.

Understand Your Insurance

Understanding these terms will help you make an informed choice when considering a health insurance plan. Contact HBW Insurance Group, serving Columbia, MD, to discuss your health insurance needs further.