A few years ago, the Journal of Health Economics found that 86 percent of Americans couldn’t define the basic terms associated with their health insurance – deductible, copay, coinsurance, and out-of-pocket maximum. And in 2016, a survey by PolicyGenius found that 96 percent of Americans overestimate their understanding of these terms, with only 4 percent able to define all four of the above concepts. The correlating result? This lack of knowledge or true understanding is likely leading to increased – and possibly unnecessary – healthcare spending.
So, what about you? How confident are you that you – and your employees – understand the terms and concepts associated with your organization’s healthcare plan? To help you out, we’ve created a “cheat sheet” of the most common terms that many healthcare consumers are encountering today as they navigate the complicated world of health insurance.
Educating yourself – and your employees – about healthcare terms is just the first step towards providing an affordable and accessible health insurance program. To truly save both your organization and your staff money, it’s important to dedicate time and resources towards finding a healthcare plan that provides better benefits for less cost than traditional plans. Nonstop’s unique approach to partial self-insurance does just that by providing a baseline savings of 12.5 percent for nonprofits while eliminating all employee out-of-pocket costs and improving access to services.
The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources believed to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose