Terms you need to understand when choosing health insurance

Choosing health insurance is one of the hardest things you do every year. Whether you are a first-time buyer or you had a bad experience with your coverage last year and need to change, there are so many things that need to be considered. Having a trusted independent insurance agent who can provide the guidance and information you need. At Central Lakes Insurance Brokers in Edina, MN, we will look over all the information that is available with you to help clarify anything that’s unclear. 


If you have developed a personal relationship with your primary care physician or a specialist, making sure you will still be able to use them is important. The network is the physicians that are included in an insurance carrier’s plan. Carriers have a contract with medical professionals to perform services at predetermined rates. This includes hospitals and labs. You may be required to stay within your network or you can pay more to go out of network. 


The deductible is the amount you are required to pay before your coverage will start to cover you. Each plan is different and some services may not be included in the deductible. High deductible policies are popular and less costly. When combined with an HSA or FSA they are a reasonable option but if you don’t have access to an HSA  or FSA you may want to look for a lower deductible. 


The copay is your portion of any service performed. It may be a set amount such as $10 to visit your primary care doctor or a percentage of the service change. 


The formulary is the drugs that are covered by the plan and the amount you must pay for each drug. 

Contact Central Lakes Insurance Brokers in Edina, MN to make an appointment to discuss your health insurance needs.