Insurance Terms Glossary
Understanding your healthcare coverage starts with knowing the terminology
Most Common Terms
Essential insurance terms everyone should know
Deductible
The amount you pay for covered health care services before your insurance plan starts to pay.
Example: If your deductible is $2,000, you'll pay the first $2,000 of covered services yourself.
Copayment
A fixed amount you pay for a covered health care service after you've paid your deductible.
Example: $25 for each doctor visit
Coinsurance
Your share of the costs of a covered health care service, calculated as a percentage.
Example: 20% of the allowed amount for a surgery
Letter A
Allowed Amount
Maximum amount on which payment is based for covered health care services.
billingAmbulatory Care
Health care services provided on an outpatient basis.
medicalLetter B
Balance Billing
When a provider bills you for the difference between their charge and the allowed amount.
billingBenefit Period
The length of time during which a benefit is paid.
insuranceLetter C
Claim
A request for payment that you or your health care provider submits to your health insurer.
billingCoordination of Benefits
Process of determining which insurance plan pays first when you have more than one plan.
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