Health Insurance 101 – Getting to the Basics of Your Health Insurance

With more and more people starting to have to consider purchasing a private health insurance plan, some are a bit stymied and confused at the terms. Others still yet are watching the news and wondering just what it is they are hearing in some of those words. Ever wish there was an Insurance primer? Something that you could find that would help you to understand just what all of those insurance geared words and terms really mean? Well, look no further, here is a small glossary of the more commonly used terms in health insurance.

Explanation of Benefits:
A letter or a message that is sent by the insurance company explaining just what is and is not covered, as well as how much you’ll end up having to pay and just how they came to that amount.

In-Network Provider:
The in network provider is the doctor your insurance company wants you to see, and will usually provide discounted co pays towards. These doctors usually have a contract with the insurance company.

Prior Authorization:
This is just the authorization or certification that says that the insurer is going to pay for a service. Usually, normal exams and the like do not require this.

Exclusions:
These are the things your insurance won’t pay for and because of this, these things are completely your responsibility to pay.

Co payment:
This is what you’ll have to pay before you can get the services covered under your insurance plan. This may also refer to the amount that you will have to pay to get your prescriptions as well, and has to be paid each time a service is rendered

Premium:
This is just what you’re paying in, each month in order to have your insurance.

Capitation:
This is the amount of money the insurance company spends on the doctors to make sure that they are treating all members of that insurer’s plan.

Deductible:
This is how much you’re going to be paying before the insurance company will pay its part of your bills. You may actually have to have several trips to the doctor out of pocket or several prescriptions filled before your insurance company will pay for your care.

Coverage limits:
You may find this term and wonder what it means exactly- this means that your policy will only pay for a certain dollar amount of health care for you. If you do go over that amount you will have to pay any charges in excess of the limit set.

These are just a few of the insurance related terms that you may come across or hear about, especially lately. Not understanding them is pretty common, and most people aren’t really clear on the terminology themselves. At least having a basic handle on the more commonly used phrases, words and terms used in insurance talk will help you to better know what you are looking for and at, and what you are hearing about as all of this goes on.

Author: Henry Fleet
Source: ezinearticles.com

Southern Insurance is a leading independent insurance provider serving all of Florida with a majority of business in Orlando & Clermont. Because we are an independent insurance provider, we can shop multiple carriers at once to find you the best coverage at the lowest rates anywhere. To see how affordable health insurance can be for your family or business, visit Health Insurance Clermont. You can also call us at 352-243-9000 or get great rates at Health Insurance Orlando.