When it comes to finding international health insurance the explanation list of benefits, exclusions and out of pocket expense can often be full of insurance jargon and put those searching for a plan at a fast halt if they are unsure of what exactly each term means. One common term that often causes those shopping for insurance to raise an eyebrow is co-insurance.
If you have also been trying to figure out what is co-insurance, you have come to the right place. First, it’s important to know that co-insurance is not a benefit like dental or hospital visits. It’s one type of out of pocket expense that you may have on an international health insurance plan. What that means is if you utilize the insurance – you and your insurance will share the financial cost.
Explanation: Deductibles, Co-Pays, and Co-Insurance
Co-insurance is the shared cost of medical treatment between the insured and the insurance company. This shared cost is typically broken down by a certain percentage, like 80/20. In the instance of an 80/20 co-insurance, the insurance company will pay 80 percent and the insured is responsible for the other 20 percent. It’s important to check out what percentage you will be expected to pay, along with if there is a maximum amount that you will need to pay that percentage to. For example, perhaps you find a plan that has an 80/20 co-insurance up to $5,000. This means that you are responsible for 20 percent of your expenses until you reach the $5,000 cap. Then, typically the insurance will pay 100 percent up to the benefit or policy maximum. Keep in mind that not all co-insurance will have a cap. While this is fine for smaller items such as a doctor visit for a cold, it can quickly add up when it comes to larger emergency situations.
It’s good to ask the question what is co-insurance, but also, what is the co-insurance percentage break down and a cap on the plan under review.
If you would like more details on co-insurance and finding an international health insurance plan that will meet your needs, contact one of our licensed agents today.