Healthcare Coverage 101: Key Terms

Define the following: 

• Premium:  The charge for insurance coverage. 

• Cost Sharing: The amount that is taken out from your payroll 

• Deductible: This is the amount you pay before the insurance company starts to cover your medical expenses. 

• Copayment: How is it different from coinsurance? Copayment is the fixed amount you pay for an exact healthcare service at the time of receiving the service. The difference is that copayments are fixed amounts, while coinsurance is a percentage of the total cost. 

• Coinsurance + how it is different from a copayment: The percentage of the cost of health care service you are receiving and are responsible for paying after meeting your deductible. 

• Covered services/benefits: The service covered by your health care insurance plan and is also known as the benefits your plan offers.