In every country, a healthcare system is one of the most important things. All the citizens should know the terms and rules that the healthcare system has. Usually, they are rather confusing and challenging, and many people, after receiving a bill from the hospital, regret not knowing them. According to McLaughlin and Olson (2018), “the high cost of medical care and insurance is a growing societal problem” (p. 164).
It is necessary to learn all the insurance terms when buying one. After watching the video, I was surprised that there are many details a person needs to take into account before choosing the insurance plan (The Infographics Show, 2018). Otherwise, one may regret it when his or her insurance does not cover the expenses. The part of the video about the insurance details made me interested because some years ago, I had a situation when I could not understand which insurance plan I should get (The Infographics Show, 2018). When I decided, it appeared that I was wrong as I did not consider some terms and later had to pay a lot of money.
There are four main things one should pay special attention to while thinking about the insurance plan. They are deductibles, copayments, coinsurance, and premiums. Deductibles are what one pays annually or months before the insurance pays for anything, or in other words before it starts working. Premiums are the amount an insured person pays his or her insurance company on a regular basis in exchange for insurance. Copayments are what a person has to pay every time he or she uses the health plan. It means that one has to pay for every visit to the hospital before the insurance pays for it. Coinsurance is the percentage of the cost one pays after covering the deductible.
In order to understand these terms more clearly, I found a federal government website with the healthcare official glossary, explanations, and examples (“Coinsurance,” 2018). For instance, the allowable costs for a person’s treatment are $10.000, the deductible is $2000, and the coinsurance is 20%. It means that, first, the insured person pays the deductible, and then 20% out of $8000 – $1600. So, the person’s total out-of-pocket costs are $3600, and the insurance company pays $6400.
Reference
Coinsurance. (2018). Web.
McLaughlin, D. B., & Olson, J. R. (2018). Healthcare operations management. Chicago, IL: Health Administration Press.
The Infographics Show. (2018). US healthcare system explained [Video file]. Web.