Health Insurance in Washington State
What is Health Insurance & Why Do I Need It?
Health insurance covers medical expenses for illnesses, injuries and other health conditions. You need it because:
- Health insurance can help safeguard your family’s physical wellbeing and way of life.
- Health insurance can make getting care more affordable by giving you access to a network of doctors and hospitals that have negotiated lower rates with insurance companies.
- Health insurance can help protect your financial wellbeing.
- Having health insurance makes paying and tracking medical payments quicker and easier.
- Health insurance coverage is required by many schools, colleges and other organization.
Medical expenses are the #1 cause of bankruptcy.
Understanding Health Insurance Terms
Health insurance has its own language. Once you get a grasp on some basic terms, health insurance will seem much simpler. Let’s start by defining these terms:
Premium: The amount you pay your health insurance company to keep your coverage active. Most people pay their premiums monthly.
Deductible: A set amount you have to pay toward your medical bills every year before your insurance company starts paying. It varies by plan and some plans have no deductible.
Co-payment or Co-pay: The flat fee you pay every time you go to the doctor or fill a prescription. It’s usually a relatively small dollar amount. Co-pays do not count toward your deductible.
Co-insurance: The percentage of your medical bill you are responsible for after you’ve paid your deductible (and co-pays). Unless you have a policy with 100% coverage for everything, you have to pay a co-insurance amount. For example: Let’s assume you’ve met your deductible. Now you have a $100 doctor’s bill. Your plan covers 80% ($80) of it. The co-insurance amount due to your doctor’s office is 20% ($20).
Out-of-pocket Cost: A cost you must pay. Out-of-pocket costs vary by plan and each plan has a maximum out of pocket (MOOP) cost. Consult your plan for more information.
These five terms are a good foundation for understanding health insurance lingo. There may be other insurance terms that are unfamiliar or confusing to you — and that’s OK. You can check this glossary for more terms and definitions.
And, of course, we at Applied Team Insurance are always here to help you.
Vancouver, WA 98662
Fax Number: 360-258-1026
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Our licensed agents are discount detectives. Ask an agent today about what discounts you may be eligible for on your insurance in Washington.