A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- DeductibleThe amount you pay out of pocket for covered costs before your insurance starts chipping in.
- CopayA fixed dollar amount you pay for a specific service, like a doctor visit, at the time you receive it.
- Out-of-Pocket MaximumThe most you will pay for covered care in a year, after which insurance covers eligible costs fully.
- PremiumThe regular payment you make to keep an insurance policy active, usually billed monthly, quarterly, or yearly.
- ClaimA formal request you file with your insurer to be paid for a covered loss or medical expense.
- Explanation of BenefitsA statement from your insurer showing what a service cost, what they paid, and what you may owe, though it is not a bill.
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Plain-English education — not personalized legal, tax, or investment advice.