Understanding Your Health Insurance Costs Video

What is a premium? 

• The amount you pay to buy an insurance policy

• A specified amount of money that the insured must pay before an insurance company will pay a claim

• An arrangement by which a company provides a guarantee of compensation for a specified loss

• Measures that are taken for disease prevention

Who typically pays for health care expenses once you have met your deductible (Stage 2)? 

• You pay for all health care expenses

• • Your insurance pays for all health care expenses

• You and your insurance company share the cost of health care expenses

• No one pays; once you meet your deductible, your health care expenses are free

What happens when you have reached your health care deductible and out-of-pocket maximum? 

• • You will continue to pay 100% of your healthcare costs out-of-pocket

• You will pay 50% of your healthcare costs out-of-pocket, which includes co-pays

• The insurance company pays all covered costs for the rest of the year

• The insurance company pays for all covered costs for the rest of your life

Which answer uses the terms premium, deductible, and out-of-pocket maximum correctly? 

• • You pay a monthly premium for your health insurance. You pay for health services until you meet your deductible. Once you meet your out-of-pocket maximum, your insurance pays the rest of your health care costs for that year.

• • You pay a monthly deductible for your health insurance. You and your health insurance company share health care costs by paying separate premium costs. Once you meet your out-of-pocket maximum, your insurance company pays your health care costs except for your copays.

• • You pay a monthly premium for your health insurance. Your insurance will cover a specific percentage of your health insurance costs up to an out-of-pocket maximum. Once you have reached your maximum limit, your only out-of-pocket expense is your deductible.

• • You pay a monthly deductible for your health insurance. When you use your health insurance, you will pay your premium out-of-pocket. Once you meet your out-of-pocket maximum for the year, your insurance will pay the remaining amount of your health care costs.