Health insurance is a contract between a company and a consumer. The company agrees to pay all or some of the insured person’s healthcare costs in return for payment of a monthly premium.1
The contract is usually a one-year agreement, during which you are responsible for paying specific expenses related to illness, injury, pregnancy, or preventative care.
Health insurance agreements in the United States generally come with out-of-pocket costs that must be paid before coverage begins.
A deductible that requires the consumer to pay certain healthcare costs “out-of-pocket” up to a maximum amount before the company coverage begins
- One or more co-payments that require the consumer to pay a set share of the cost for specific services or procedures
