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Health Insurance is a agreement between an insurance company and an individual. The term can be annually or monthly. The kind and amount of health care costs that will be covered by the policy are detailed in advance, usually in the Evidence of Coverage booklet. The policy-holder will need to pay premiums, deductibles and co-payments. Also the individual will be responsible for charges for services not covered under the policy or that exceeds what the insurance company considers usual, customary and reasonable (UCR). The UCR amounts vary by location.
Common Costs
Premium: The amount a person pays to the company each month for health coverage.
Deductible: The amount that must be paid out-of-pocket before the plan pays its part. For example, a person might be required to pay a $1000 deductible per year, before any of their health care expenses are covered.
Co-payment: The amount that an individual needs to pay out of pocket before the policy pays for incurred charges. For example, a person might have to pay a $30 co-payment for a doctor's visit, or a prescription.
Coverage
The coverage you need may depend on your age and current health condition. Another thing to consider is past medical problems you may have, sometimes referred to as pre-existing conditions. These may affect your premiums or you may be required to have an exclusion period.
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