Back in June Melissa and I wrote a blog post to help our readers become Insurance Savvy. One of our favorite features we found this last year to help explain the confusing world of insurance was the "No Excuses" Skimm'tionary guide by the Skimm. The site defines terms that are often thrown around during appointments, or calls to your insurance company. Not only is it informative...but funny! So what are some of the terms in the A-Z guide we found most helpful? See some of our favorites below!
The average percentage of your health care costs that the insurer covers. If a plan has an actuarial value of 70%, you’re on the hook for the other 30% of the cost of medical expenses. That’s where things like co-payments and your deductible come in.
A medical Venmo request. After you’ve visited the doc, you or your doc will send a claim to your insurance company for any services you received (think: lab tests, the visit itself). The insurance co processes it aka pays for its portion and then lets you know how much you might have to pay.
Like a cover charge without the open bar. It’s the flat fee you pay for covered medical services. Preventive care (think: annual physical) may be fully covered by your insurance, meaning no co-pay.
Out of Pocket Maximums
The max amount of money you have to pay for health care in a year. This includes money that goes towards your deductibles, copays, or coinsurance fees. After you meet your maximum, your insurance pays for all costs related to your covered health benefits. Win.