Can someone please help me understand coinsurance on health insurance plans?

health insurance plans?

Can someone please help me understand coinsurance on health insurance plans?

I am trying to get a better deal on health care insurance but don't understand the point of 80% coinsurance. If it is only a few bucks higher with the same deductible, isn't it better to go for the 100% coverage? Does it mean that the insurance co will pay only 80% of the bill once the deductible is met? I don't understand. Please help!

Best Answer - Chosen by Voters

Someone's offering you a plan with 100% coverage, for hospitalizations, for only a couple bucks more? Sure, it makes more sence to pay a couple bucks.


Yes, that deductible means, they pay NOTHING until after you've paid the full deductible amount, in medical claims. AFTER the deductible, then you STILL pay 20%, if you've got an 80/20 plan.

or

Basically insurance will pay 80% of their contracted amount with the provider and you pay 20%. Here is an example:

$300.00 deductible (this typically applies before any benefits)
Once your deductible is met this is what will happen:
Doctor charges $150.00. Insurance discounts it to $80.00. They pay 80% of that $80.00, so that is $64.00. You will be liable for the balance of $16.00 (20%).

If your policy pays 100%, everything will go to your deductible first and then the insurance will pay 100% of the allowed amount and you pay 0%.
Keep in mind you must follow their network to get the discounted amounts.

Source(s):

work for insurance company

or

The coinsurance on health plans is the % that you pay of your medical bill until you reach your MAXIMUM OUT OF POCKET amount, which for example on an Anthem Bluecross PPO plan typically would be $2500. Lets say your deductible is $500, which means you pay 100% up to $500, and thereafter you pay your % portion up till you reach the max out of pocket. After the max out of pocket has been reached, your insurance will pick up 100% of the bill.
Note that this is during 1 year, so every year it starts over.

http://answers.yahoo.com/question/index;_ylt=Ah6I21UjodJmZnyKQH9iifCuxQt.;_ylv=3?qid=20090611133555AA71S7H

Needs insurance

What is the difference between liability and full-coverege insurance?

What does liability cover and what does full converage cover?

Best Answer - Chosen by Voters

Liability means, you have at least the bare minimum coverage required by law, in your state. You could have more, but you have at least, the absolute minimum.

Full coverage means, you have at least the bare minimum, plus collision, plus comprehensive. It does NOT mean you are fully covered. It does NOT mean you have rental coverage, or lost wages, or medical, or any other coverage, which is OPTIONAL, in your state. You might have it, you might not.

If you buy a car, and have a loan on it, you might be required to carry "full coverage". BUT, that might not be enough coverage for your situation.



or

Liability covers damage you do to other people or their property...when it's your fault. "Full Coverage" is liability plus coverage for your vehicle, this includes collision coverage and coverage for theft, hail, fire, vandalism...etc.

The term full coverage usually includes Personal Injury Protection which covers a small amount of medical expenses for people in your vehicle....no matter who was at fault. It also usually includes Uninsured Motorist coverage...which I highly recommend you buy....1 in three drivers on the road in Texas are driving without insurance.

Analyze Your Need For Life Insurance

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One approach to determine how much life insurance one should carry is to analyze the various needs of the family in the event of the death of a wage earner. Life insurance satisfies a number of these needs by providing a fund that can be used to:

• Pay off an individual’s last debts such as medical bills and funeral expenses
• Meet estate taxes and other expenses in settling an estate
• Provide life income for the spouse
• Pay off a mortgage
• Pay for the children’s education
• Provide funds for retirement
• Provide an income for the policyholder’s spouse to give the family time to readjust to a new standard of living
• Draw interest to provide funds for some special purpose
• Provide a monthly income until the children are grown and out of school

The Purpose Of Life Insurance

My dreams HOUSE

The Purpose Of Life Insurance

Your need for life insurance will vary with your age and responsibilities. The amount of insurance you buy should depend on the standard of living you wish to assure your dependents. You should consider the amount of assets and sources of income available to your dependents when you pass away.

Social security benefits, available cash and other sources of income and investments may not provide the standard of living you have in mind.

Life insurance helps bridge the gap between the financial needs of your dependents and the amount available from other sources, is the amount to be provided by life insurance. Your agent or other financial advisor can help you with these calculations. The Internet, as well as many financial magazines, books and articles are available to help you as well.

http://www.ins.state.ny.us/consumer/life/cli_purpo.htm

Why should I buy life insurance?

Why should I buy life insurance?


Many financial experts consider life insurance to be the cornerstone of sound financial planning. I can be an important tool in the following situations:

Hey! what are you doing? Don't jump...

1. Replace income for dependents
1. If people depend on your income, life insurance can replace that income for them if you die. The most commonly recognized case of this is parents with young children. However, it can also apply to couples in which the survivor would be financially stricken by the income lost through the death of a partner, and to dependent adults, such as parents, siblings or adult children who continue to rely on you financially. Insurance to replace your income can be especially useful if the government- or employer-sponsored benefits of your surviving spouse or domestic partner will be reduced after your death.

2. Pay final expenses
   Life insurance can pay your funeral and burial costs, probate and other estate administration costs, debts and medical expenses not covered by health insurance.
3. Create an inheritance for your heirs
   Even if you have no other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries.
4. 
5. Don't worry my daughter, I buy already a life insurance. I don't leave you without money, I love you.
6. Pay federal “death” taxes and state “death” taxes
   Life insurance benefits can pay estate taxes so that your heirs will not have to liquidate other assets or take a smaller inheritance. Changes in the federal “death” tax rules between now and January 1, 2011 will likely lessen the impact of this tax on some people, but some states are offsetting those federal decreases with increases in their state-level “death” taxes.
7. Make significant charitable contributions
   By making a charity the beneficiary of your life insurance, you can make a much larger contribution than if you donated the cash equivalent of the policy’s premiums.
8. Create a source of savings
   Some types of life insurance create a cash value that, if not paid out as a death benefit, can be borrowed or withdrawn on the owner’s request. Since most people make paying their life insurance policy premiums a high priority, buying a cash-value type policy can create a kind of “forced” savings plan. Furthermore, the interest credited is tax deferred (and tax exempt if the money is paid as a death claim).