Here are some health insurance terms that all small business owners should know.
As a small business owner, handling employee benefits can be a challenge. You know you need them to attract and retain productive employees, but how do you know you are making the right choices? Having the proper vocabulary is vital before you can comprehend what you’re looking at. Here are some health insurance terms that all small business owners should know.
Premium
In health insurance, the premium is the amount paid to the insurance company to keep coverage active. While the premium is one of the factors when choosing a healthcare provider, other costs, such as deductibles and copayments, must be considered. In general, picking a lower premium policy with a higher deductible is an excellent idea if you are young and healthy. If you want lower copayments and costs at the time of treatment, selecting a higher premium policy is ideal.
Copayment
One of the most prevalently seen health insurance terms is the “copayment.” The copayment linked with your health insurance plan is the amount you pay to receive a particular healthcare service. For instance, you may need to pay a $15 copayment to visit your primary care doctor in their office. Your health insurance may also have a $25 copayment at the pharmacy for a particular medication brand.
Deductible
The deductible for your health insurance policy is the dollar amount you pay before the insurance company handles the rest of your covered claims. The premiums that you are paying usually don’t count toward this number. Even if you are in good health, it’s a good idea to keep your deductible below 5% of your annual income if you have an injury and need to take advantage of it.
Maximum Out-of-Pocket Cost
One of the most crucial health insurance terms is “maximum out-of-pocket cost.” This number indicates the maximum amount you could be expected to pay out of pocket. After you’ve reached this amount through copayments and deductibles, your insurance company will administer the additional covered medical expenses in full without requiring you to continue making copayments.
Find the Right Health Insurance Solutions for Your Needs
Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on X, Facebook, and Linkedin