LIFE WELL LIVED
2025
Understanding Health Insurance Terminology
Your monthly premium is the combination of what the company pays and what you pay for your benefit plans each month. Your portion of the benefit premium is deducted from each paycheck. The per pay period rate is what you will see be deducted from each paycheck. WHAT IS A MONTHLY PREMIUM?
You can now use the new Plan Comparison Tool in Alight to see a side-by-side of the plans we offer. This will give you a clearer picture of what the deductibles, coinsurance, and out-of-pocket maximums are for each plan to make an informed decision. When selecting our High Deductible Health Plan, you have access to enroll into a Health Savings Account. This is like a debit card that can be used for health expenses like copays and out-of-pocket expenses until you meet your annual deductible. You elect a pre-tax payroll deduction amount and you also receive an annual employer match, if eligible. Unused funds can also be invested with this account to grow tax-free. HEALTH SAVINGS ACCOUNT Why an HSA? HOW TO COMPARE PLANS New Tools To Help Each visit your doctor or specialist will require you to pay a small co-pay at the time of the visit. This can range from $10-$50 each visit. WHAT IS A CO-PAY?
WHAT IS A DEDUCTIBLE?
A deductible is the minimum threshold you must reach before the insurance company will start paying for their portion/percentage of co- insurance for your health expenses. You will pay 100% of health expenses out of pocket at the beginning of the year until you meet the deductible amount for the plan.
WHAT IS COINSURANCE?
WHAT IS AN OUT-OF-POCKET MAXIMUM? Co-insurance kicks in after you have met your annual deductible where the insurance plan will begin to cover a percentage of your bills - for example you pay 20% and they pay would pay 80%. Once you hit your out-of-pocket maximum for the year, the insurance plan will cover 100% of in-network expenses beyond that point until the plan year ends.
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