Glossary of Medical Insurance Terms
As you shop for cheap medical insurance quotes, you might encounter some new terms. Here are definitions of the most common medical insurance terms.
Coinsurance - some insurers require you to pay a certain percentage of your medical costs. For example, you might have to pay 20% of the costs, and your insurance company will pay $80.
Co-payment - a flat fee required by some insurers for medical services. For instance, you might pay a $10 co-pay for a doctor visit. If it is important to you to minimize out-of-pocket costs, you will want cheap medical insurance quotes with minimal co-pays.
Deductible - just like with auto insurance, this is the amount of your medical expenses for which you are financially responsible. If you cannot afford to pay these costs, you might look for cheap medical insurance quotes on plans with little to no deductible.
HMO - a health maintenance organization. Offers lowest premiums but least degree of flexibility in your medical care. Requires you to see only providers in the HMO's network and requires a referral before you can see a specialist.
Indemnity plan - also called a fee-for-service plan. Allows you to choose any health care provider and see specialists without a referral. Insurance company reimburses you for a certain percentage of your medical expenses. If you are looking for cheap medical insurance quotes on a traditional insurance policy, an indemnity plan might be the best option.
POS - point-of-service plan. This is a hybrid between a PPO plan and an HMO. It is similar to a PPO, but adds a primary care physician as a gatekeeper. You must go through this physician for referrals. You might get cheap medical insurance quotes on a POS plan if you are looking for a policy that compromises between an HMO and a PPO.
PPO - preferred provider organization. This type of insurance allows you to see provider's out-of-network but gives you strong financial incentives to stay within the PPO network. You can also see a specialist without getting a referral first. As you shop for cheap medical insurance quotes, keep in mind that a PPO has more flexibility than an HMO but also costs more.
Make sure you know what you are doing about the process of applying for medical quotes and how it works.
