It is very likely that the cost of health insurance will continue to rise in the near future. It is important to have a basic understanding of where your money is being put towards. The price of your health insurance will depend largely on your age, your current health condition, your geographic location, income and your job status. There are always questions about how to choose your health insurance, but the act of purchasing health insurance is not a difficult task.

There are a number of different ways you can purchase affordable health insurance:

• Employer provided health insurance – It is common that midsize to large companies provide health insurance to their employees as a benefit. The majority of Americans that have health insurance obtain it through their employer.
• Individual purchased health insurance – If you work for a small company or are self-employed, then chances are your work does not provide health insurance. If that is the case, you will need to purchase insurance individually.
• Government provided health insurance – If you are 65 or older, disabled, or have little to no income, you may qualify for Medicare or Medicaid which is paid for by the government.

Health Insurance Costs

The cost of your health insurance each month is based on a couple of different factors. These factors include premiums, deductibles, coinsurance, copayment, and out-of-pocket expenses.

Premium

Your premium is the monthly fee owed to the insurance company that provides your health coverage. If you have employer provided health insurance, your employer pays your monthly premium. It isn’t uncommon to have to pay for a portion of your monthly premium which can be deducted from your paycheck.

Deductible

A deductible is the payment you must make annually for health related expenses before your health insurance policy begins to pay. Deductibles are common in PPOs (Preferred Provider Organization) for health care provided outside of your network.

Coinsurance

It isn’t uncommon for some health insurance plans to require you to pay a percentage of the cost of covered services after you have reached your annual deductible. This is considered coinsurance.

Copayment

Managed care plans such as PPOs and HMOs sometimes require you to pay a copay. This is usually a flat fee or a set amount that must be paid for a specific health related service.

Out-of-Pocket

This is an expense you are required to pay for health-related services that go beyond your monthly premium. An example of some of these expenses may include coinsurance, copayment or an annual deduction.  Different policies have a different Out-of-Pocket Maximum, so keep this in mind while choosing your health insurance policy.

Your Local Health Insurance Provider

Bagwell Insurance Group is a health insurance provider who wants to help you and your family with your health insurance questions and concerns. We have been in business for over 30 years and during all of those years, we have designed countless health insurance plans for every imaginable need. Call our Gainesville, Georgia office today at (770) 534-1574 if you would like to learn more about the cost of health insurance or the role we play in providing the very best health insurance plans in North Georgia.