How does health insurance work in terms of payment?




Let's say there's a family, and there's three different prescriptions for different medications within the family. Let's say the Dad is paying for health insurance. Do you just pay for health insurance once, when you register for it? Do you pay $20 monthly? Does the price you pay go up when you add more medications? I'm confused.

asked Aug 23 '12 at 14:51 Rayna Morelen New member

1 answer




When you get health insurance, there is what is called a premium. This is the amount you pay on a scheduled basis. For instance, if you get insurance through your employer, you would pay your part of the premium each payday.

If you pay your premiums on time, you get to keep your insurance. Now, when you use your insurance, there is what is called a deductible. This is an amount of money you must spend before the insurance starts paying anything. A typical deductible might be $250/year for the policy holder and $500/year for the family. So, if your dad had the policy and went to get a prescription, if it was his first prescription of the year and it cost $100, he would pay $100. Every time he used stuff under the plan, he would pay everything until he hit the $250 deductible, then the insurance would kick in. (the same goes for the family coverage, until the $500 was met by everybody in total - not separately - you would pay 100%).

link comment answered Aug 25 '12 at 05:47 Chae Croney New member

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