Health Insurance 101: Key Terms You Should Know
Health insurance can feel like learning a new language. Understanding a few key terms can make a big difference when choosing a plan or reviewing your benefits. Here are some of the most common health insurance terms—made simple:
Premium
The amount you pay each month for your health insurance plan, whether you use medical services or not.
Deductible
The amount you must pay out-of-pocket for covered healthcare services before your insurance begins to pay. However, some plans may have before-deductible benefits.
Copayment (Copay)
A fixed amount (like $25) you pay for a covered service, such as a doctor’s visit or prescription.
Coinsurance
The percentage you pay for covered services after you meet your deductible. For example, your plan might cover 80%, and you pay 20%.
Out-of-Pocket Maximum
The most you’ll have to pay in a year for covered services. Once you hit this amount, your plan pays 100% for covered care.
Network
A group of doctors, hospitals, and providers your insurance company contracts with. Staying in-network usually means lower costs.
Need Help Decoding Your Plan?
At Valora Benefits Group, we break down the jargon and help you choose the coverage that fits your needs—plain and simple.
📞 Call (616) 287-3223 or schedule a consultation to get started.
