Insurance 101- Understanding the Basics
Health insurance can feel overwhelming — but it doesn’t have to. This page gives you a clear, no-nonsense breakdown of how health insurance works and what to expect.
​What Is Health Insurance?
Health insurance is a way to help manage the cost of medical care. You pay a monthly fee (called a premium), and in return, your plan helps cover the cost of services like doctor visits, prescriptions, and hospital care.
Common Insurance Terms
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Premium – The monthly cost to keep your plan active.
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Deductible – The amount you pay out of pocket before your plan starts helping.
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Copay – A fixed cost you pay for certain services, like doctor visits or prescriptions.
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Coinsurance – A percentage of medical costs you share with your insurer after meeting your deductible.
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Out-of-Pocket Maximum – The maximum you’ll pay in a year before your plan covers 100% of approved services.
Types of Plans
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Individual Plans – Coverage for one person, great for self-employed individuals or freelancers.
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Family Plans – One plan that covers multiple people (like spouses or dependents).
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Group Plans – Often offered through employers for employees and their families.
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Supplemental Plans – Add-on options to help with things like accidents or hospital stays.
What’s Typically Covered
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Most plans help cover:
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Doctor and urgent care visits
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Hospital stays and surgeries
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Lab work and diagnostic tests (like blood work or X-rays)
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Prescription medications
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Preventive services (such as physicals and screenings)
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Exact coverage varies based on your plan, so it’s always good to review the details.
