Health Insurance
Health insurance is a maze of new vocabulary protecting one simple thing: you can't be wiped out by one bad accident.
The four numbers that matter
Every plan boils down to these.
- Premium — what you pay every month, even if you never see a doctor.
- Deductible — what you pay out of pocket before insurance starts covering.
- Copay — flat fee per visit (e.g. $30 to see a doctor).
- Out-of-pocket max — the most you can be charged in a year. After this, insurance pays 100%.
How to pick a plan
Healthy and rarely see doctors? Go high-deductible (HDHP) with low premiums and pair it with an HSA. See doctors regularly or have a chronic condition? Go lower deductible even if premiums cost more.
If you're under 26
You can stay on a parent's plan until age 26 — usually the cheapest option. After that, look at your job's plan, the ACA marketplace at healthcare.gov (subsidized if income is modest), or Medicaid if income is very low.
Glossary
- HSA
- Health Savings Account — tax-free money for medical expenses, only with HDHP plans.
- PPO
- Plan that lets you see any doctor; usually pricier premiums.
- HMO
- Plan that requires you to stay in-network and get referrals; usually cheaper.
- In-network
- Doctors who've agreed to discounted rates with your insurance.
Next steps
- Find your insurance card — note the deductible and out-of-pocket max.
- Check if your doctor is in-network before your next appointment.
- If uninsured, see what you'd pay at healthcare.gov (takes ~15 min).