In this week’s episode, we explore an often confusing aspect of health insurance; Co-Insurance.
Co-insurance is one of the aspects of insurance that can be difficult to conceptualize. Hopefully, by the end of this post, you’ll have a better understanding of it.
Q from YOU to Ninja HQ
“What is Co-Insurance?”
Co-Insurance in a Nut Shell
In essence, Co-Insurance is when you share the cost of your medical expenses with your insurance company after you have met a certain deductible, or if you have no deductible, after you have made the payment upfront. This means that for every dollar you spend on your medical expenses, a certain percentage will be paid by you and the remainder will be paid by your insurance company. This continues until you meet your Max-Out-Of-Pocket.
Example of Co-Insurance
Let’s look at an example. Joey has an insurance plan with a $2,000 deductible and a $4,000 max-out-of-pocket. It also has an 80/20 Co-Insurance split.
This means that for every $1 Joey spends on his medical expenses, he pays 20% of it (or $0.20) and his insurance company pays the remaining 80% (or $0.80).
Once Joey has reached his Max-Out-Of-Pocket of $4,000, Co-Insurance stops. Even if Joey spends more money on his medical expenses, his insurance company will pay for 100% of the cost from that point onwards.
Understanding Co-Insurance
So now you know what Co-Insurance is and how it works. Remember, co-insurance is an important part of most health insurance plans.
It is important to familiarize yourself with it and research the Co-Insurance percentage of the plan you are considering before you decide to sign up.
If you have any additional questions about Co-Insurance OR anything else about health insurance, don’t hesitate to PM your Question to Ninja Betty on our Facebook Page @healthinsurnaceninjas.
If we choose to feature it in an episode of Ask Betty!, we will send you a $25 Amazon gift card. We hope this post has helped you better understand Co-Insurance. Stay tuned for more episodes of “Ask Betty!”.
Ask Betty!
Get your bi-weekly dose of “Ask Betty!” series. This is an activity that YOU can participate in, and if YOUR question is used in an Episode, we’ll email you a $25 Amazon gift card! Good luck.
PM your insurance question to Ninja Betty via our Facebook Business page (here).
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The Ninja News Flash⚡
Get your bi-weekly dose of “Ask Betty!” series. This is an activity that YOU can participate in, and if YOUR question is used in an Episode, we’ll email you a $25 Amazon gift card! Good luck.
PM your insurance question to Ninja Betty via our Facebook Business page (here).
Stay in the Ninja News Loop!
Subscribe to our monthly newsletter & receive all our free resources once a month in your Inbox.
