As you get older, health insurance is one of the things that you’ll encounter more frequently. As a kid, you didn’t really need to pay much attention to health insurance, but it’s a constant in every adult’s life, much akin to taxes. Unfortunately, most adults today only know the surface level of what health insurance is, how it’s computed, and so on. Here’s a guide to help you gain a better understanding of health insurance.

 

Identify Your Yearly Expenses

 

It makes financial sense to think about your total annual health insurance costs. These include your premiums, deductible, and co-payments/co-insurance. Premiums are what you pay to your insurance provider for your health insurance plan every month. Deductibles pertain to the amount that you are required to pay before your insurance plan kicks in. For example, if your deductible is $500, you’ll have to pay the first $500 of the expense out of your own pocket. Co-payments refer to what you pay for medical services after your insurance provider starts paying out.

 

Note What Your Insurance Plan Covers

 

Health insurance plans mostly cover general doctor and hospital consultations, prescription medication, wellness services, and home care medical devices. Most health insurance plans will not pay for elective treatments, such as tooth bleaching or invisalign. You also likely won’t get any coverage for name-brand medications and brand new medical technologies. Lastly, all plans should cover preventive care, such as routine checkups and seasonal vaccine administrations. It all depends on what type of health insurance plan and which insurance provider you use.

 

Know What Factors Affect Your Health Insurance Costs

 

How much you spend on health insurance will predominantly depend on how much healthcare services you use every year. Individuals who require regular or more frequent care can expect to pay higher premiums on their health insurance plan as it leads to lower deductibles and wider coverage. For individuals who do not expect to use as much healthcare services, a plan with a lower monthly premium but with a higher deductible often makes more sense.

 

Your ability to get professional medical attention and quality healthcare services is crucial as you age. Make sure you know what you are paying for each year and what you are eligible for.