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Understanding health insurance terms

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Don’t let health care terms confuse you.

Do you know the difference between a deductible and a copayment?

If not, don’t feel bad. Many people are confused by health insurance terminology.

To help you navigate your way through this year’s open season, here are some important definitions:

  • Deductible: The amount you pay for covered health care services before your health plan starts to pay
  • High-deductible health plan: A plan with a higher deductible than a traditional insurance plan, but usually with lower monthly premiums than a health savings account
  • Copayment: A fixed amount paid for certain covered health care services
  • Coinsurance: The percentage paid for some covered health care services
  • Flexible spending account: An account set up to pay for out-of-pocket medical or dependent care expenses on a pretax basis
  • Preventive services: Routine health care that includes screenings, patient counseling and vaccinations, such as flu shots

Want to test your knowledge? Try the online Open Season Benefits Quiz.

Additional information to help you better understand your plan options, as well as a variety of resources, are available on the Open Season LiteBlue site.

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