Understand popular terms of Insurance policy.
Many people are not familiar with terms used in (medical) insurance policy. Some of the popular terms explained below.
HMO: HMO stands for Health Maintenance Organization.
PPO: PPO stands for Preferred Provider Organization.
Personal physicians (HMO plans): Providers with contract to insurance company.
Preferred providers (PPO plans): Providers with contract with insurance company as part of preferred provider network. People without, are Non-preferred providers.
Deductible: The initial amount you pay in a calendar year for covered services before insurance company starts paying.
Copayment: The fixed amount and/or percentage amount you pay for covered services after meeting any applicable plan deductible.
Preventive care: Primary preventive medical services provided by a physician for the early detection of disease when no symptoms are present.
Waivered condition: A condition that is excluded from coverage for charges and expenses incurred six months from the effective date of coverage.