Page 10 - Ria Benefits Guide 2020 FINAL Texas

HEALTH INSURANCE TERMS

HOW YOU PAY FOR HEALTH CARE COSTS
You share the cost of services with Ria and the insurance plans you select. As you review your plan options you should consider the
following types of costs:

• PREMIUM: A premium is the total cost for your medical insurance. You and Ria share this cost. You pay your portion
through pre-tax payroll deductions.

• COPAY: A copay is a set payment you make for a specific service. For example, in the PPO plan you will have a $15
copay for visits to your primary care physician.

• COINSURANCE: When you are paying coinsurance, you are sharing a percentage of the cost of services with the
medical plan. For example, in the PPO plan, after you satisfy your deductible, you will pay 10% coinsurance for most
medical care that you receive from preferred providers.

• OUT-OF-POCKET MAXIMUM: The annual out-of-pocket maximum protects you from major medical
expenses. This is the most you would pay, including your deductible, for eligible expenses during a plan year. Once you
reach the out-of-pocket maximum, the plan pays 100% of the usual, customary and reasonable charges for covered
services. For example, if you are enrolled in the PPO plan, your calendar year out-of-pocket maximum for in-network
care is $2,500 per person or $5,000 per family, which includes the annual deductible.

• DEDUCTIBLE: A deductible is the amount you must pay before the medical plan begins sharing the cost of
services. You pay this full amount, if required by your plan, before the plan pays benefits. For example, if you are
enrolled in employee only coverage in the HSA plan, you must pay $3,000 per person or $6,000 per family for covered
care, over the course of the plan year, before the plan pays any benefits.

YOUR TOTAL COST OF CARE
• Remember, your total health care cost for the year is the combination of your out-of-pocket expenses when you access
medical care and the premium contributions you make for coverage.

YOUR TOTAL COST OF CARE = PREMIUMS + OUT-OF-POCKET COSTS

EDUCATIONAL VIDEO:
HEALTH INSURANCE TERMS

http://video.burnhambenefits.com/terms

10 RIA EMPLOYEE BENEFITS 2020