As you look for a health or travel insurance overseas, one of the important questions you will be asking yourself is, “how much do I need to pay out of pocket?” Remember, just because you have insurance, it does not mean that everything will be covered at 100%. Health and travel insurance plans usually have three different types of out of pocket expenses:
- Deductible – A deductible is how much you will pay to the doctor or hospital for your eligible expenses (unless otherwise stated in the plan benefits). This is usually per person and it is typically a per period year amount. This means that if you pay the deductible, you will not need to pay it again until you renew the plan. Some plans have a family maximum deductible which will cap your out of pocket expenses if there are multiple family members covered under one plan. On many of the plans offered by International Citizens, you will have the choice to choose what deductible you’d like on your plan. As you increase your deductible, the price of the plan will decrease since you will pay more out-of-pocket when you need to use the plan.
- Copay – For US citizens, you may already be familiar with this term. Copay is usually a smaller amount that you pay to the doctor or other specified service that is paid upon treatment. This is also paid to your provider and is usually in place of the deductible. There is usually no limit on the number of copays.
- Coinsurance – Many international plans have a coinsurance component, in addition to the deductible. The coinsurance is a cost sharing measure where both the insured and insurance company pays a percentage of the cost. In many cases, you will find that this applies after the deductible and will most likely be 80% coverage up to a capped amount. Once you exceed this capped amount, the plan typically covers 100% up to the policy maximum. Check your particular plan to see if there is a cost sharing provision.
By understanding your plan, you will avoid any hidden surprises. While you pay the premium to have an insurance plan, most plans also have some additional out of pocket expenses should you need to use your plan. If you have questions on our plans and how the out-of-pocket expenses work, please do not hesitate to contact us.