Since the demand for the schemes of health insurance for families are increasing day by day, the misconception regarding this topic is also spreading among the people. One of the biggest misconceptions is the Co-Insurance.
When a person is going for taking the health insurance plans for his families then he must carefully analyze the levels of the co-insurance. It must be noted that the premium of health insurance plan with 25% co-insurance level is more than the 50% plan. Shared cost known as co-insurance done between the insured person and the insurance company are usually cheaper and money spends by the person is generally in an affordable manner.
· Let’s consider an example. Let there is an insurance company A which has deductible amount of 2000$ and the plan is of 80/20. This means the co-insure amount after 20% deductible is 2000$. Consider the expensed from the pocket of person are 3000$. This means that the total cost spent by the person is 5000$ and hence the total cost of the plan is 380$ monthly for the 5 family members.
· While on the other hand let say there is an insurance company B which has a deductible amount of 5000$ but the plan is for 100%. This means there is no co-insurance after spending 5000$. Hence the pocket expenses of the person is zero even after his deductible and the total plan cost him 290$.
· Therefore both the plans provide the 100% coverage even after spending expenses from the pocket.
