How to Understand Your Health Insurance Coverage

Understanding ins and outs of your health insurance plan may be difficult, but it’s an important step in protecting your physical, mental and financial health. To help you out, we’ve assembled some health insurance basics that apply to almost any plan. To begin with, there are so many insurance-specific terms that it’s easy to get tripped up and confuse them. Here are four you need to understand: Deductible: This is the amount you must pay out-of-pocket before the insurance company will contribute to any of your health-related expenses. Coinsurance: This is the amount, usually a percentage, that you pay for any health care costs after you’ve met your deductible. For example, if your deductible is $1,000 and you require a service that costs $2,000 and have 25 percent coinsurance, then you pay $1,000 to meet the deductible and 25 percent of the rest ($250), for a total of $1,250. Copay …

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Rethinking Your FSA (Is my FSA still worth it?)

Your Flexible Spending Account (FSA) has undergone some changes over the years. Most notably, over-the-counter medication such as cough, cold and flu medicines and pain relievers cannot be reimbursed through your FSA, unless the items have a doctor’s prescription or another supporting document. While it all may sound confusing and frustrating at times, these health-spending accounts are still among the best ways to pay for medical expenses that are not covered or paid in full by your medical, dental or vision plans—for you or any dependent. This tax-advantaged account can help your dollar go much further. Here’s how: Let’s say you put away $1,000 in your FSA for the calendar year. An average income will be taxed 25% by the federal government. Your FSA investment, however, is not taxed. The means you’ll have $1000 to spend on medical expenses, versus only $750. (That does not include state income tax, which …

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