Why Choose McElroy's Insurance
What is Health Insurance
A company and a consumer enter into a contract known as health insurance, where the company pays for some or all of the consumer's medical expenses in exchange for a monthly premium. Typically, this agreement lasts for a year, during which the insurer covers expenses related to injury, illness, pregnancy, or preventative care. However, health insurance plans in the U.S. may have limitations such as deductibles, which require the consumer to pay some healthcare costs out-of-pocket up to a certain limit before insurance coverage kicks in, and co-payments, which necessitate the consumer to pay a set portion of the cost for specific services or procedures.
How Does it Work
Individuals who are self-employed, freelancers, or gig workers have the option to purchase insurance directly on their own. The Affordable Care Act, also known as Obamacare, established a national database called HealthCare.gov, where people can search for standard plans from private insurers that are available in their area. Taxpayers with incomes below the federal poverty threshold may receive subsidized coverage. Some states have their own versions of HealthCare.gov that cater to their residents. Retirees receive federally-subsidized care through Medicare, while families in the lowest income bracket are eligible for subsidized Medicaid coverage.
What Are Copays, Deductibles, and Coinsurance?
· The deductible is the amount that the customer must pay out of pocket every year before the insurer begins to meet the costs. This is now capped by federal law.
· Copays are set fees that subscribers must pay for specific services such as doctor visits and prescription drugs even after the deductible is met.
· Coinsurance is the percentage of healthcare costs that the insured must pay even after they've met the deductible (but only until they reach the out-of-pocket maximum for the year).