 TITLE: How Does Health Insurance Work? CONTENT: The Costs of Health Insurance\n-----------------------------\nThere are several important costs associated with a health insurance plan:\n*   **Premiums**: This is the monthly amount you pay for your insurance plan. If you have an employer-sponsored plan, your employer may pay all or part of the premium. If you purchase health insurance through an ACA Health Insurance Marketplace, you may qualify for a tax credit that lowers your out-of-pocket expense.\n*   **Deductibles**: Your plan's annual deductible is how much you'll have to pay for medical services (not premiums) before the insurer starts covering part of the cost. However, most health insurance plans offer free preventive care and annual checkups from in-network providers even if you haven't reached your deductible.\n*   **Copayment**: The amount you pay for certain types of services, such as a doctor's appointment, specialist visit or prescription. Copays are often flat fees, such as $40 per visit, and they might not count toward your deductible.\n*   **Coinsurance**: The amount—often a percentage—that you'll pay for services once you reach your deductible. For example, if an X-ray costs $300 and your coinsurance for that type of service is 20%, you'll pay $60.\n*   **Out-of-pocket maximum**: The most you'll have to pay for medical care in one year, including copays, coinsurance and your deductible. Once you reach the maximum, your insurance will pay for all your covered costs for the rest of the year.\nWhen choosing a health insurance plan, you may end up making trade-offs between the type of plan, premiums and other costs. For example, a PPO plan might be the most flexible, but it could also come with a premium that's higher than what would be charged for a comparable HMO or POS. In general, plans with higher premiums have lower deductibles, copayments and coinsurance amounts. END