We get it—health insurance can be confusing and overwhelming.
In your health insurance documents, there will be a table that outlines the different benefits covered, as well as how much money the insurance company may pay toward that benefit. Here is an example of the schedule of benefits for Student Journey Medical Insurance, one of our most popular international student insurance plans. This can help you understand the deductible, coinsurance, or copay that you could expect to pay if you are sick or injured, on top of the initial or monthly premium.
What is Insurance Premium?
Insurance premium is the amount of money you pay to have insurance, or access to care and assistance with covered medical costs. If the school in which you’re enrolling has a sponsored health insurance program, the cost to opt-in would be the premium. Among other potential benefits, lower premiums may be available to you if you choose to waive the school-sponsored plan and purchase your own international student insurance plan.
What is an Insurance Deductible?
The deductible is the amount of money you must pay before the insurance company begins to share responsibility for your healthcare costs. For example, if your deductible is $500, then you are responsible for the first $500 of all covered medical expenses. Higher deductibles usually mean lower premiums. Once your deductible is met, coinsurance kicks in.
What is Coinsurance?
Coinsurance is the percentage of costs that you share with your health insurance company after you have met your deductible. For example, if you have an 80/20 plan, then, after meeting your deductible, your health insurance provider pays 80% of the cost, and you pay the remaining 20% up to your maximum limit.
What is a Copay?
This can seem like a lot of additional costs, on top of your premium, which is why you should compare plans carefully.
You may be tempted to choose the lowest initial premium, but choosing a plan with a high deductible, coinsurance percentage, or copay could be a costly decision in the long-run.