IMPORTANCE OF INSURANCE
Health insurance is a contract between you and your health insurance company. When you buy a plan, the company agrees to cover a portion of your medical bills if you get sick or injured.
There are other important health insurance benefits. Plans available through the Connect For Health Colorado Marketplace (and most other plans) offer free preventive care like immunizations, health screenings, and follow-up care. They also cover some prescription drug costs.Health insurance can also help you find a doctor who can get to know you and your unique medical needs.
Health Insurance protects against high and unexpected costs
Did you know that the average cost of a three-day hospital stay is $30,000? Or that a broken leg can cost as much as $7,500 to fix? Health insurance can help protect you against unforeseen expenses like these.
How health insurance works
If you are insured, you pay certain costs and your insurance covers some of them:
Premium: The premium is a fixed amount that you usually pay into your insurance every month.You pay it even if you don’t receive medical treatment in a given month.
Deductible: If you need medical care, the deductible is the amount you pay for the treatment before the insurance company starts paying their fee. If the deductible is reached, the insurance covers part of the health costs. Some plans have lower deductibles, like $250, others have higher deductibles, like $2,000.Many plans offer preventative benefits and sometimes other care benefits before you reach your deductible.
Co-payment: Co-payment is a fixed amount you pay for a medical service. For example, a doctor’s visit can cost $150 if you don’t have insurance. With health insurance, you can pay as little as $25, and your health insurance will cover the rest.
Coinsurance: Coinsurance is similar to a co-payment, except it’s a percentage of the cost you pay.For example, you can pay 20% of the cost of a $200 medical bill, then $40 and Medicare the rest.
How Insurance Protects You
Insurance protects you from high medical expenses in two ways:
Maximum costs: This is the total amount that you will have to pay in the event of illness. For example, if your plan has a maximum payment of $3,000, after paying $3,000 in deductibles, coinsurance, and coinsurance, the plan will cover any covered coverage above that amount for the remainder of the year.
No Annual or Lifetime Limits: Health plans on the Connect For Health Colorado marketplace cannot impose dollar limits on the amount they spend each year or throughout their lifetime to cover essential health services.Once you reach the maximum deductible, your insurance company must pay for all covered medical services without limit.