If you have health insurance, you’ve probably heard of deductibles. These are the expenses you have to pay out of your own pocket before your insurance kicks in. After you meet your deductible, your insurance covers the rest of the cost. You will typically pay a copay or deductible, depending on which type of plan you choose. In some cases, you may even have to pay out of pocket if you have a medical emergency.
Preventive care is usually covered at full price, including an annual check-up, flu shots, and some wellness screenings. But some plans have a copay, which is a fee you must pay at the time of service. To save money, you should try to go to doctors and specialists that are in your insurance plan’s network. Generally, your insurance plan will cover care from doctors and hospitals in its network at lower rates than from out-of-network providers, but you may have to pay the full cost of care.
Another key difference between health insurance and deductibles is the out-of-pocket maximum. This is the maximum amount of money you will pay out of pocket in a year. This is important because health care costs are expensive, and many people can’t afford to pay for everything out of their own pockets. Using a health insurance plan, you can spread out the risk over the whole group. This will protect you against high health care costs.