How to calculate the cost of medical insurance
When you evaluate your medical needs, the next step is to calculate the total cost of participating in health insurance, compare your financial ability, and see if you can afford health insurance.
To purchase health insurance, you need to pay a premium, which must be paid regularly, whether you are seeing a doctor or not. In addition, there are many medical expenses that require you to out-of-pocket. For example, the insured must first pay the deductible before the insurance company begins to reimburse the expenses. In general, the lower the premium, the higher the self-payment. In addition, you will have to pay part of your medical expenses each time you see a doctor. Insurance companies do not reimburse 100% of all fees.
In the United States, some people do not dare to see a doctor easily even if they have medical insurance, because they cannot afford to pay for it after they see a doctor.
1. Premium Premium
Premium refers to the fee that the insured pays to the insurance company on a regular basis, usually monthly. The level of insurance premiums is related to coverage, your age, and health status. The older the insured person, the corresponding increase in insurance premiums.
When you buy insurance, you may find it most cost-effective to choose a premium premium plan. actually not. Premium is a fixed fee that you must pay after you participate in insurance, which is equivalent to membership fees. If you have medical expenses after you see a doctor, you will also need to pay various other fees, such as deductible, copayment, coinsurance, etc.
2. Self-payment Deductible
After participating in insurance, at the time of medical treatment, in accordance with the provisions of the insurance contract, you must first pay a certain amount of medical expenses, and the insurance company begins to reimburse the medical expenses incurred thereafter. This self-paid amount is called Deductible.
Each insurance plan provides for a different amount of self-payment. Some insurance plans do not require you to pay a deductible. Most insurance plans require individuals to pay self-payments ranging from $500 to $5,000.
As long as you use medical services and require insurance companies to reimburse expenses, you must pay the contractual self-payment every year, and the insurance company will reimburse the future expenses. After the start of the new insurance year, the insured will have to repay the self-payment to reimburse the subsequent expenses.
Therefore, a high deductible health insurance plan may not be a small expense. When you choose an insurance plan, you should measure your financial ability to see if you can afford this amount of medical care within one year.
Usually, the higher the insurance deductible insurance plan, the lower the premium premium. vice versa. You may need to choose between a high insurance premium, a low self-payment, or a low insurance premium self-paying medical insurance plan.
In addition to paying deductible for self-payment, medical insurance usually requires individuals to pay for both coinsurance and/or copayment after each visit. This is the way in which the insurance company and the insured share the medical expenses.