Insurance Basics

Health Insurance Vocabulary

Premium The amount that you pay to purchase your insurance coverage.
Deductible The amount that you must pay before the insurance company starts to pay.
Co-insurance The percentage that you must pay after the deductible is paid.
Co-payment The fee you must pay for medical services or supplies.
In-Network or Preferred Care Doctors and facilities that are contracted by your health plan typically provide special discounted rates for plan members.  To maximize your savings and reduce your out-of-pocket expenses, select a Preferred Provider or facility.

Out-of-Network or Non-Preferred Care

Non-preferred doctors and facilities are not contracted by your health plan to provide services to you.  You will pay more for Non-Preferred Care.
Explanation of Benefits (EOB) A statement you receive after getting medical treatment that outlines what the health insurance plan paid and what portion of the payment, if any, is your responsibility.

You should always confirm a provider accepts your insurance before getting treatment.  In addition, be sure to provide a copy of your insurance ID card at the time of service.  These actions will save you time and money. 

For more health insurance vocabulary, click here.