If you've always been covered under an employer's health insurance policy and rarely had to use it, you may not realize how coverage works when you have to buy the insurance on your own. It's important to understand how your insurance works so you know when you're covered and how much you have to pay. Here's more information on how health insurance works.

The Deductible Is An Important Term To Understand

The deductible is the amount you have to pay before your insurance starts paying toward your care. If you rarely have medical bills, you might want a high deductible so your monthly premium will be lower. If you have a chronic condition and need medical care often, you may want a lower deductible so insurance will start paying for your care sooner and with less cost to you.

When you compare policies, you'll want to compare monthly premiums, but you'll also want to compare deductibles so you know what you'll need to pay toward your medical care in a year before you'll get help from insurance.

The Copay Amount Is Important To Know Too

The copay is the set amount you pay once your insurance starts contributing to your care. You may need to make a small payment each time you see a doctor, have blood tests done, or have a hospital stay, and your insurance company will pay the rest.

However, once you reach the maximum out-of-pocket amount you pay as set in your policy, the insurance starts paying 100% of your medical care as long as the charge is within their allowable limits. For instance, if your lab charges more for a blood test than your insurance allows, you could have to pay the difference.

Vision And Dental Insurance Are Often Extra

Eye and dental care are also important for your health, but these may not be covered under your primary health insurance. If not, you'll be able to buy a policy just for eye or dental care. These usually have a set price the insurance will contribute toward eyeglasses, a tooth filling, or dentures so you know in advance how much you'll need to pay once you've got a quote for your care from the optometrist or dentist.

Understanding a health insurance policy can be confusing if you've never paid much attention to the particulars of your employer's insurance. Be sure to ask questions and make sure you understand your options before you decide on a policy since the policy you choose will affect your finances if you ever need to have medical treatment.

For more information, contact a health insurance provider today.