How does health insurance work?

Health Insurance works by having individuals or families paying for coverage, and in return the insurance company pays for costs related to medical care. This can be broken down into three main categories: premiums, copays, and deductibles. Premiums are monthly payments, usually paid to an insurance company in exchange for becoming a policy holder. Premiums will usually vary based on the type of plan you choose and the services you need. Copays are a set fee that is required every time you visit a doctor or receive medical services. This fee is usually a fixed amount and is used to offset the costs of providing the service. Deductibles are an amount of money that must be paid out of pocket before the insurance company will begin to cover your medical expenses. Generally, the higher the deductible, the lower the monthly premium. Overall, health insurance works by having you pay the insurance company a monthly premium. When you receive medical services, you pay your copay and any amount above your deductible until it is met. Once the deductible is met, the insurance company will begin to cover the rest of the cost.

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