Lesson · 12 min
Health insurance basics
Premiums, deductibles, copays, out-of-pocket max.
You pay premiums every month. When you use care, you pay until you hit the deductible; then insurance shares costs (copays/coinsurance); until you hit the out-of-pocket max, after which insurance covers 100%.
HDHP + HSA
A High-Deductible Health Plan paired with a Health Savings Account is often the best deal for healthy young people because HSA contributions are triple tax-advantaged.
Vocab
- Deductible
- What you pay before insurance kicks in.
- Out-of-pocket max
- The most you'll pay in a year before insurance covers 100%.
Quick check
1. Insurance pays 100% after you hit…