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When you’re shopping around for health insurance, there are many options to consider. One of those options is 80/20 health insurance. Continue reading to learn more about it before you decide to go with an 80 coinsurance medical plan.
What is an 80/20 Health Insurance Plan?
An 80/20 insurance plan is a form of coinsurance. It is a way to share health care costs with your insurance company. How much you pay and how much your insurance company pays is determined by a number of factors such as deductibles and premiums.
However, with an 80 coinsurance plan, it is set that your insurance company will cover 80% of the medical costs while you pay 20%.
80/20 - How Payment Works
Once you have 80/20 insurance, your health bill is split. Once the hospital or doctor’s office sees your medical card, they understand that they have to send 80% of the bill to your insurance company while you will have the rest (20%) of the bill.
Beyond that, however, you also have to pay your deductible and your premium. More about deductibles and premiums will be explained in the following sections.
Deductibles and Premiums with 80/20 Insurance
To start off with a simple definition, a deductible is an amount that you must pay before your health insurance will actually kick in. This is something that is determined once you first sign up for your insurance. There is a range of deductible options you can choose from (e.g. $200 or $1,000).
For 80/20 insurance, you will have to pay the deductible first. Afterward, the insurance will start, and your insurance company will cover the 80% of the costs while leaving you with the 20%.
Premiums are determined once you choose a health care plan. A premium is how much you pay your insurance company in exchange for coverage. Typically, this is done on a monthly or bimonthly basis.
Understand though that this money does not cover your actual medical expenses. Rather, it just ensures that you will have your 80/20 insurance coverage.
There are other things that come with having an 80/20 health insurance plan. For instance, you can have a coinsurance cost on your prescriptions in addition to your treatment. With your 80 coinsurance plan, you will only pay 20% of the cost of the drug.
Other than the deductibles and premiums, in many cases, your 80/20 health insurance will have a set amount for your out-of-pocket expenses. For example, you can have a maximum $10,000 on what you can spend on out-of-pocket expenses. Sometimes, your deductible can be applied to this cost.
More so with an 80 coinsurance plan, this will only be applied to what your health insurance actually covers. When you do sign up for an 80/20 health insurance medical plan, you should receive details about what is covered. Any type of treatment or prescriptions that you receive that is not listed, you must pay the entire bill.
How You Can Lower Your 80/20 Insurance Costs
What you pay can change depending on a number of circumstances. This all comes into play with your deductible and your premium. They coincide with one another. A higher deductible plan can lower your premium. In addition, it can also lower your out-of-pocket costs. This type of plan will be cheaper in the long run compared to if you go with a lower deductible.
If you find that you are comfortable and capable of going with an 80/20 insurance plan, it is beneficial to compare a number of different health insurance companies. By doing so, you will ensure that you come away with the best insurance plan for yourself or for your family.
Find An 80/20 Insurance Plan Today
First Quote Health is a leading health insurance quote provider, so if you’re looking to enroll in an 80/20 health insurance plan you’ve come to the right place. Talk to an experienced agent or broker, and learn more about 80/20 medical plans. To get started, just enter your zip code here.