Open Enrollment is coming up in the Fall and with no changes yet to the Affordable Care Act, we feel it's important to keep this at the forefront of your mind. New surveys show that just 4 percent of Americans are able to correctly define the four terms: deductible, co-pay, coinsurance and out-of pocket maximum that determine how much they will personally have to pay under their insurance plans.
Only half the population is “somewhat confident” in selecting the right health insurance plan, whereas 12 percent of the population is not confident “at all.”
- 74 percent of people believe they know what a deductible is; only 51 percent can accurately define a deductible.
- 47 percent of people believe they know what coinsurance is; only 22 percent can accurately define co insurance.
A deductible is the up-front amount of buy-in you have with your medical services before the insurance plan kicks in. This is the same concept as the deductible set on your auto insurance to repair damage. Coinsurance is split amount paid (typically 80% insurance company, 20% insured) after you've reached your deductible. Not understanding out deductibles and coinsurance works can result in an unexpected bill of $1,000 or more. Contact your agent at Ieuter Insurance Group with any questions you may have. Let us be the experts to guide you to the right choice!