Co-insurance and Deductible – factors which determine your travel insurance costsHealth Insurance is now an integral requirement for international travel, and given the myriad options available online it is not an easy decision. However, it is important to take care of this before you travel as healthcare and medical help is very expensive in foreign nations and your domestic health insurance plans travel with you overseas. There are many private insurance companies who offer visitor insurance also commonly known as visitor medical insurance.
With so many choices of plans online, it gets a little tricky to select the right plan for your specific situation and needs. This results in questions raised about the coverage regarding benefits, the maximum covered amount, the price, type of plan, age related questions, coverage in particular area with provider network...
Given these many questions, quite often travellers want to understand specific visitor health insurance terminologies among which "Co-Insurance and Deductible" are very relevant.
Normally, there are 2 kinds of visitor medical insurance plans namely Fixed or scheduled benefits plan and Comprehensive plan, with co-insurance perhaps more relevant in comprehensive plans.
Let us first understand what Deductible means. Deductible is the amount that the insured pays before the insurance company pays for any medical expense. This amount can be chosen by traveller while buying the plan. The Deductible value is inversely proportional to the premium price of the plan. Both Fixed and Comprehensive plans have a deductible applicable on them. This amount can vary from $0 to $2,500 in each plan. It is up to the insured to choose their deductible amount on the plan the same way they choose their policy maximum amount.
Coming to the Co-insurance, this is the percentage amount that the person pays after the deductible for any medical expense incurred. This is applicable only for Comprehensive plans even though it is applicable only for the first $5,000 of expense after which the insurance company pays 100% after the deductible is met. Fixed plans do not have Co-insurance.
Co-insurance percentage varies from one plan to other. Some plans waive the co-insurance when the insured goes to a doctor within the PPO network. Some plans reduce the percentage for expense within the PPO network. This knowledge of these two health care terms help in making an informed decision while selecting a suitable plan for ones needs.