The terminology insurance companies use can be confusing. Like reading a contract to lease a car, sometimes these terms are meant to be confusing. The more you read that you don’t understand, the more likely you are to agree to whatever they say. Most employers aren’t making it easier to understand either. Rather than enrolling employees in a traditional insurance plan, most employers have turned to managed care health insurance plans.
People should understand basic insurance terms so they can make informed decisions about their health. That is why we decided enough is enough with the insurance nonsense and we’ve defined four commonly misunderstood and confusing insurance terms.
1) Deductible. The deductible is simply the amount of money you must meet by paying out of your own pocket for dental services that will be covered by insurance before your insurance company will pay for any expenses. Depending on your insurance, this could be a high ($5,000-$10,000) or low ( $500-$1,000) deductible.
2) Copay. Once your insurance is covering your dental services, you may need to make a co-payment, or copay for services received. The copay amount can vary based on the type of covered dental services provided.
3) Premium. The premium is an amount the insured pays periodically to the insurance company for covering his/her risk. Your dental insurer just can’t take your word for it that you brush 2-3 times a day and floss. Even if you do, you’re covering yourself for the unexpected, a root canal for example. Better to have it and not need it than to need it and not have it!
4) Coinsurance. Coinsurance and co-payment are easily confused. If the dental insurance’s allowed amount for a dental visit is $100 and you've met your deductible, your coinsurance payment of 20% would be $20. Your dental insurance pays the rest of the allowed amount.
If you have additional questions regarding your dental insurance, please feel free to call the Robison Dental Group in Mesa, AZ @ 480-924-2300 or visit our website @ http://www.drrobison.com/about-us/