Are you feeling overwhelmed by choosing a health insurance plan? There are so many plans to choose from with confusing fine print details.
With different coverage, premiums, co-pays, and deductibles, you have no idea where to even begin!
You are not alone. Millions of Americans go through the same process every year. It’s no secret that the health insurance system is complicated. According to a 2020 study by Qualtrics for Kasasa, as many as 80% of Americans choose the wrong insurance plan for themselves.
But, with the right information, you can choose the best health insurance plan for you and your family. You don’t have to worry about being covered when someone gets sick, or an emergency happens.
Keep reading to learn more about the 80/20 health insurance plans and how they can benefit your lifestyle.
The 80/20 Health Insurance Plans
In the 80/20 insurance plan, the insurance provider will cover 80% of the medical costs. You are responsible for pay the remaining 20% of the costs.
This is called coinsurance. You split the medical costs with your health insurance provider. You must pay the 20% of medical expenses after you’ve reached your deductible but before you hit your out-of-pocket limit.
Let’s break this down. The deductible is the amount you have to pay toward your healthcare expenses before the insurance kicks in.
Essentially, you cover 100% of the costs until you reach the deductible amount. This is true for all insurance plans.
When you have 80/20 coinsurance, you only need to pay 20% of your medical bills after you’ve paid the deductible. The insurance provider covers the remaining 80%.
You will continue to pay 20% of all future medical expenses until you reach your out-of-pocket maximum.
Once you’ve hit the out-of-pocket maximum, you are no longer responsible for the medical expenses you amass in the year. This doesn’t include your premium.
The process repeats each year. Each plan has different premiums, deductibles, and out-of-pocket maximums depending on your provider, coinsurance, and level of coverage.
It is important to know that your monthly premiums do not count toward your deductible or out-of-pocket maximum. The premium is the cost you pay to have insurance.
The Benefits
The 80/20 insurance plan is not for everyone. If you are looking for coverage for yourself and are relatively healthy, you can save money by taking on more responsibility and risk.
70/30 or even 50/50 coinsurance will have lower premiums.
On the other hand, for families and individuals with health complications or frequent visits to the doctor, the 80/20 plan is probably best for you.
Additionally, if your insurance company does not follow the coinsurance guidelines for the year, you will receive a refund. Terms and conditions apply to the refund because of the different coinsurance plans.
However, you or your employer can select the rebate method best to receive the refund based on the terms.
Let’s Get Insured!
By now, you understand the 80/20 health insurance plans. You’re feeling more confident in choosing the perfect health insurance plan for you and your family.
All you need to do is contact FutureWise to sign up for a health insurance plan. With the help of FutureWise, your family will stay healthy and receive coverage stress-free.