Insurance can be a difficult issue, especially in the US. We’re spending twice as much money per person on healthcare as we did 40 years ago. While there have been some moves and programs implemented to make healthcare more affordable, things are still difficult for many of us.
Not only that, but inflation costs are rising faster than wages, which means that we’re already in a difficult position with our other bills. This makes it even more important to get decent health insurance at the lowest price possible.
This is where coinsurance comes in. But what is coinsurance, and why is it so useful?
We’ll answer those questions and others in the paragraphs below.
1. What Is Coinsurance
Coinsurance is a type of insurance where the cost of healthcare is split between the insurer and the insured. As with many types of insurance, the buyer usually has to pay the deductible.
However, the rest of the cost is split 80/20, with the insurance company paying 80% of the cost while the customer pays 20.
You will have to pay monthly premiums, but that’s true with any insurance company. Premiums are payments made to keep your health insurance active.
2. Coinsurance and Pre-Existing Conditions
Many people worry about whether their pre-existing conditions will disqualify them from coinsurance. The answer is no, you can still get coinsurance with a pre-existing condition.
This is partly due to the Affordable Care Act. Unfortunately, despite heated discussions and debates on the news, many of us were never told what it actually does.
In some extreme cases, you may run into the coinsurance ceiling. This is where the maximum limit for your coinsurance lies. If your medical bills exceed this in a given year, the insurance company will pay 100% of the costs until the year is up.
This is especially common if you have a pre-existing condition and require regular health assessments and updates.
Keep in mind that this only applies to essential medical care. Your insurance is not going to cover an expensive nose job unless you need it.
3. The Affordable Care Act and the Role It Plays
The Affordable Care Act helps secure health insurance for the most vulnerable in society. Insurance companies can no longer refuse to cover you because of a pre-existing condition, nor can they charge you more because of it.
Furthermore, if insurance increases your premiums above a certain amount, they must explain why they did it. This keeps them from adding arbitrary bills and charges out of nowhere.
You can also choose your own doctors, and are protected from sudden cancellations of insurance by the provider. Your employer is also not allowed to fire you because of the insurance benefits you get or because you reported your company for not following the act.
Coinsurance: What It Is and How It Works
Coinsurance is an insurance plan which splits the cost of your medical bills between you and your insurance company. We’ve talked about the major features of coinsurance in this article, but every plan is different. You’ll want to look more into your particular plan for specifics.
For more information on various types of insurance, or to get a quote, please visit our site. Feel free to contact us with any questions or concerns.