· Health Insurance Examples
Healthcare Insurance may seem like a simple concept but usually, it is not. It really depends on what kind of policy you are purchasing and what clauses it has. Most of the policies usually have an option of coinsurance for the customers. It means that the cost of the medical expense would be shared by both parties, the insured one and the insurance companies. These ratios vary from 20:80 to 30:70 and 50:50, where the higher percentage is paid by the company and the lower one is paid by the insured one. In addition to this, a fixed deductible amount is also mentioned in the agreement.
For example, Alice had a medical procedure for $1500 recently and she claimed her insurance policy for that. According to her policy, she had a $300 deductible and 30:70 coinsurance plan. So she had to pay the $300 first, then 30% out of the remaining amount 1200 of the medical expense. Which is $300 + $360 and the amount Alice will pay in total is $660. The insurance company will pay the rest, i.e. $840.