Health insurance companies price their plans such that there is a balance between the amount you pay to the insurance company and the amount you pay when you need medical care.
Selecting a health insurance plan is complicated by the huge number of options available: PPO, HMO, high deductible, low or no deductible, various doctor office visits. Consider weird terms like “out-of-pocket limit,” then add in options from different insurance companies (Blue Cross, Health Net, Blue Shield,) with their different provider networks and your head begins to spin.
How can you tell which plan is the best for you. This illustration should help you understand how insurance companies price health insurance policies.
There is a trade off between the monthly price you pay to the insurance company (called “premium“) and the amount that you pay when you need medical services (called “benefits.”) The more you pay the insurance company the less you pay when you receive medical services.
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