As a way to begin let’s define what I mean by traditional health insurance. The traditional health insurance policy is composed of:
The deductible – This is the amount that you have to pay for a medical event before your health insurance will start to pay. In today’s world that deductible is often $3000 or more.
The coinsurance – After the deductible is met most policies require that the insured pay a percentage of all medical costs up to a maximum. Usually the insured pays anywhere from 20% to as much as 50% of every dollar billed.
The copays – In an attempt to make routine health care accessible many policies include a copay for doctor visits and prescriptions in lieu of having to meet a deductible. An example of this is the $10 office visit copay.
Maximum Out-Of-Pocket Costs – This is the most that an insured can expect … Read More