How Insurance Plans Work

Healthcare is expensive, especially when something unexpected happens.The idea of insurance is to make these services affordable for everyone, no matter their income.

With insurance, you pay a certain amount every month, called a premium.Like a Netflix or cable subscription, if you do not pay it, it can be cancelled. When you get sick, have an accident, or develop a health problem, the money you and others have paid for insurance will help pay for your medical bills.

Many insurance plans will not start paying for your healthcare untill you have spent a certian amount of money each year, called a deductible.

When you visit most doctors, you will pay a set fee, called a co-pay. The amount you spend on your co-pay is determined by your insurance plan.

When you have insurance, you will never pay more than a set amount each yeat for services that are covered under your plan. This amount is called your out-of-pocket maximum , and after you spend that amount, your insurance will pay 100% of the medical bill.

Watch this video to learn more about how health insurance works.

Health Insurance Explained

The YouToons explain common health insurance terms and how people pay for insurance. They also talk about how people use different types of insurance, like HMOs and PPOs.