A health insurance invoice is used by health insurance providers to bill patients for premiums and coinsurance payments that are due. Invoices are also a useful source of information for member’s when it comes time to file an annual federal tax return.
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Health insurance gives a person the comfort to know that medical and surgical expenses are covered in the event something unfortunate occurs in their life. By paying a monthly rate, or what is called a premium, an individual can be covered up to a certain amount. The higher the monthly premium the more in coverage an individual can obtain. Through the health insurance marketplace, an individual can compare plans to see which compliments their situation and life best. (Source: Census.gov)
The majority of the population has private health insurance (67.2%) obtained through their employer. Many others obtain their health insurance through the government (37.7) or what is called the Marketplace. When using the Marketplace, health insurance must be purchased during the open enrollment period, which typically occurs from November 1st to December 15th. Health insurance can still be purchased after the deadline but it will be much more difficult. Health insurance rates are often defined by how well the economy is doing and rates go with the flow of economic trends.
The cost of health insurance comes down to three major questions:
1. What is the size of your family? – Single, non-married, people pay the most. The larger the family, there is a greater chance at qualifying for a subsidy to lower the overall cost.
2. What is your household income – A household with low income can qualify for more credit through a subsidy and a household with high income should have no problems finding and paying for health insurance.
3. What is the average price per plan in your State? – Depending on your location (State), prices for plans will vary that are similar to your situation in your area.
Other factors that decide how much a person pays is based on the Coinsurance and Copay, which are out-of-pocket expenses related to your health insurance plan.
Coinsurance – Amount that you share with your health insurance company when paying for medical expenses after your deductible has been reached. For example, if a patient gets a bill for $100,000 and has agreed to pay a 20% coinsurance rate, the patient would be responsible for paying $20,000 dollars while the insurance company would be $80,000.
Copay – A set fee amount for every time a medical expense is rendered.
To simply sum it up; the higher the deductible, the lower the monthly premium payment. The lower the deductible, the higher monthly premium will be. A deductible is the amount a member must pay before their health insurance will pay for the remaining cost.
Healthy people tend to have higher deductibles and lower premiums as they do not expect to encounter medical issues. These type of plans are seen as emergency plans. Older people, due to the greater chance of medical problems, pay higher monthly premiums to mitigate the large out of pocket expenses after a major surgery or operation.
If a member receives a medical bill for $20,000 and has a deductible of $4,000, the member must pay the first $4,000 of that bill before the insurance company pays for the remaining $16,000. The good news: once a deductible has been paid, the insurance company is responsible for paying all future medical bills within that year.