When purchasing Health Insurance in Berks County from Unruh Insurance Agency, there is some basic information that consumers need to be familiar with. Most people know that they should carry health insurance, but have very little idea about how it works when the time comes to use it. Health emergencies are stressful enough without having to worry about how to pay for care. The terms that are seen on many documents can be confusing, but taking the time to learn about them will lead to a better insurance experience from every aspect.
When an insurance policy is purchased, the amount of money that is paid to the company is called a premium. This monthly amount keeps a policy in effect. The amount is based on a number of factors including age of the insured. However, a premium is not the only cost to consider when comparing health insurance plans. Some medical services and prescriptions have co-payments that must be made at the time the service is rendered. Frequent doctor’s visits are often the place where you will be asked to provide this payment. For those who visit the doctor often, an affordable co-payment is a must.
There are also deductibles. This is an amount that must be paid towards major medical care services before the insurance payment portion of coverage kicks in. If a person is young and healthy, it may be best to select a plan with a higher deductible, but lower monthly premium costs. Older customers may decide to go with a plan that has higher premiums, but better coverage. Some suggest that this amount should be kept in the range of about five percent of a person’s annual income, after taxes.
There is also a concept known as coinsurance to be aware of. An insurance provider often pays a set percentage for certain services. So, if a procedure is covered at 80 percent, the insured needs to pay the remaining amount in addition to any deductible and/or co-payment amounts. However, many plans have a maximum out of pocket amount set, too. This means that once you have paid to this amount, the rest of the coverage is paid by the insurer.
