Health care is confusing, but one thing’s for certain: It’s expensive. And health insurance companies don’t always make it easy to understand what’s covered, what’s not, and how much you’ll be on the hook for paying. Watch the video above to learn more about these health insurance terms:
Deductible: The amount you pay before your insurance coverage kicks in. It resets annually.
Copay: The amount you pay after you have met your deductible. It’s a fixed price for services and medications, and can vary by the type of physician you visit, the class of medication you’re taking, and other factors.
Out-of-pocket maximum: The top limit of what you’ll spend in a year out of pocket for deductibles and copays.
Premium: Your monthly fee for health insurance. If your employer provides you coverage, then you probably pay a portion of the premium, while your employer pays the rest. A higher premium may mean a lower deductible; on the other hand, a lower premium may mean a higher deductible.
Health savings account (HSA): A type of pre-tax savings account for health expenses. Funds roll over year to year, and some accounts even gain interest.