Did you know that only 28 million people in the United States of America did not have health insurance coverage in 2020? When you get insurance coverage, you need to know some key terms to fully understand your insurance costs and plans. One of the most confusing areas when it comes to health insurance is coinsurance vs. copay.
They seem quite similar on the surface, but they are very different regarding your healthcare costs and it’s important to understand which healthcare options meet your budget the best. The good news is that you’ve found the perfect guide that will help you find the insurance plans that you need.
Keep reading to learn more today!
What Are Copays?
If you visit the doctor and you have health insurance, you’ll need to pay a copay for the services rendered. The amount of money that you pay is called the copay, and it’s split between you and your insurance provider. Depending on your healthcare options, you could get an insurance policy that has a copay as low as $10 per doctor visit.
There are also copays that apply to things like medical prescriptions, urgent care visits, and trips to the emergency room. Copays are great because they apply to the situation no matter if you’ve met your deductible for your insurance plan or not.
It’s one of the biggest ways that health insurance helps you save money as you get the treatment that you need. Your copay is especially vital if you need short term health insurance.
What Is a Coinsurance?
Coinsurance is different from copays, and knowing the difference is vital when you start looking at your different options and types of insurance. Your coinsurance is the amount of money that you’re responsible for paying after you’ve met your health insurance deductible. The rest of the money gets taken care of by your health insurance provider.
One of the most common rates for coinsurance is an 80/20 plan. This plan means that you pay 20 percent of the cost of your healthcare while your health insurance provider takes care of the other 80 percent.
Something to keep in mind with coinsurance is that it will only cover certain medical services that you receive. You need to make sure that these services are covered before you move forward with a consultation and the procedure itself.
If you choose to get a service that isn’t covered by your insurance plan then you’ll need to pay all of what is owed. The benefits booklet provided by your healthcare provider should give you a better idea of what gets covered by your coinsurance.
Now You Know the Difference Between Coinsurance vs. Copay
Understanding the difference between coinsurance vs. copay is vital if you want to find the best types of insurance while cutting down on insurance costs. Your copay is the money that you pay for things like visits to the doctor or getting prescriptions filled, and you don’t need to meet your deductible for that. Coinsurance is the percentage of a medical service that you pay after meeting your deductible.
For more informative and engaging articles like this one, make sure you explore the rest of our website!