Health insurance terms you need to know before open enrollment begins

Health insurance terms you need to know before open enrollment begins

Do you ever feel like health insurance is confusing on purpose? There is so much jargon and so many acronyms.

Learning these health insurance terms can empower you to better understand what you're signing up for.

It’s open enrollment season and millions of Americans will choose a health plan.

Here’s a guide to health insurance terms you need to know before open enrollment begins.

1. Premium: The premium is the amount you pay every month. It's just like your internet subscription or any other bill.

2. Cost-sharing: It's your share of the costs for health care services you receive.

3. Deductible: Your deductible is the amount of money that you have to spend on health services before your insurance starts paying.

4. Co-insurance: It's a percentage of health costs that the consumer shares with the insurer.

5. Out-of-pocket maximum: This is a limit on the total cost-sharing consumers pay during the year including co-pays, co-insurance and deductibles.