How Health Insurance Works | What is a Deductible? Coinsurance? Copay? Premium?

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- If you have a health insurance plan,

or you're in the market for insurance,

you may be feeling a bit overwhelmed,

and maybe confused by all the terms being used,

copay, deductibles, premiums, co-insurance,

individual out-of-pocket maximum.

Add the fact that many of these can vary widely

based on the coverage or plan,

and you've got a lot to wrap your mind around.

In this video, we're going to break down

and demystify these essential health insurance terms,

explain how the costs work for both you

and your insurance company,

and hopefully make you feel a bit more confident

about how your plan works.

So let's get started.

Sort of the view from 10,000 feet is that

there are three levels of healthcare costs,

and the higher your costs for the year,

the higher up you go, level one, level two, level three.

On level one, you pay for everything.