Blue HowTo: Health Insurance 101

Health insurance is important but why and what is it we can explain health insurance covers the cost of your medical care including doctors visits and prescriptions think of it as a safety net in case you or a loved one gets hurt or sick it can also provide coverage for dental and vision care.

Plus mental health and substance abuse disorder services your health insurance coverage can be offered through your employer what's known as group coverage or through a health plan that you choose yourself called an individual plan each month you're responsible for paying a certain amount to your health plan.

In exchange for coverage this is known as your premium if you get coverage at work this is taken out of your paycheck automatically and your employer may pay some of the cost you may have heard the word deductible that's a specific amount you pay for medical care before your health plan.

Pays their share for example let's say your deductible is three hundred fifty dollars if you get a medical bill for two hundred dollars you're responsible for paying the entire cost the next time you go to the doctor you get a bill for four hundred dollars you pay 150 and your health plan covers.

The remaining costs then there's a co-payment or simply your co-pay that's a set amount you pay for a covered service like a visit to the doctor or hospital or a specialist or filling a prescription different health plans have different co-pays and this set amount can change depending.

On the service you get generally once you pay your copay there's no additional amount for you to pay some plans may also have co-insurance that's your share of the cost for a service usually calculated as a percentage you start paying co-insurance after you pay.

Your deductible if you have a 20 co-insurance you pay 20 of each medical bill and your health plan would pay the remaining 80 percent now you know some of the basics of health insurance it can be a little confusing at times but you can count on us to help you stay informed and healthy.

Every step of the way
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