• Coinsurance
• Deductible
• Co-payment

Deductible
Deductibles are annual out-of-pocket costs that policyholders must satisfy before
the insurance provider contributes their share of the health care expenses. For example, an individual Ohio health insurance plan generally has a $250 deductible -which means that the policyholder is responsible for the first $250 for the year – before benefits are covered. Quite often healthy insurance consumers opt for health plans with low-premium and high deductible policies – to save on upfront expenses.

Coinsurance
Coinsurance is a percentage of a medical service that the patient or policyholder is responsible to pay. For instance, if a patient has a dermatologist appointment, the policyholder is has to pay a certain percentage of the doctor’s medical service, referred to as “usual, customary and reasonable” (UCR) fees. Most Ohio health insurances require patients to cover 20 percent of the difference. Meanwhile, the insurance company will pay the other 80 percent. (However, from insurance company to insurance company the UCR varies).

Co-payments
Co-payments work like this: Before an insurance policy pays for specific products and services, the policyholder is responsible for covering an upfront portion or out-pocket fee.

Most health plans, including many health maintenance organizations (HMO) as well as preferred provider organizations (PPOs), require patients to pay a flat rate for each doctor’s visit. The same applies to prescribed medications and other medical products (in example, x-rays, specialists, and other wellness services). Although co-payments are an out-of-pocket expense, they do not carry any specific maximum requirements like coinsurance payments.

The reason insurance companies require patients to share the expense of various medical services is to prevent people or from abusing or misconstruing physician visits as a “free service.”

Ohio health insurance shopping tip: If you’re shopping for coverage, compare the cost of the aforementioned term to select an affordable plan. Click on Ohio health insurance quote for a fast quote.

Other article resources:  Ohio Health Insurance and Indemnity Plans