6 Insurance Terms International Students Should Know
International students should familiarize themselves with key insurance terms to navigate their health insurance options effectively. Here are six important insurance terms to understand:
- Premium:
- The premium is the amount you pay for your health insurance policy, usually billed monthly. This is a fixed cost that you must pay regardless of whether you use any medical services. Understanding your premium helps you budget for your insurance costs.
- Deductible:
- The deductible is the amount you must pay out-of-pocket for healthcare services before your insurance starts to cover costs. For example, if your deductible is $500, you will need to pay that amount for medical expenses before your insurer begins to pay for covered services.
- Copayment (Copay):
- A copayment is a fixed amount you pay for specific healthcare services at the time of receiving them. For instance, you might pay a $20 copay for a doctor’s visit or a $10 copay for a prescription medication. Copayments can vary based on the type of service and your insurance plan.
- Out-of-Pocket Maximum:
- The out-of-pocket maximum is the maximum amount you will have to pay for covered healthcare services in a policy year. Once you reach this limit, your insurance will cover 100% of the costs for covered services for the remainder of the year. This term is important for understanding your financial risk.
- Network:
- A network refers to the group of healthcare providers and facilities that have contracted with your insurance company to provide services at reduced rates. Using in-network providers typically results in lower out-of-pocket costs compared to out-of-network providers.
- Pre-existing Condition:
- A pre-existing condition is a health issue that existed before you obtained your health insurance policy. Some insurance plans may have waiting periods or exclusions for coverage related to pre-existing conditions, so it’s important to understand how your plan addresses these issues.
Familiarizing yourself with these terms can help international students make informed decisions about their health insurance options and ensure they have the coverage they need while studying abroad.
