Skip to main content



Transcript: Explaining premiums, deductibles, coinsurance and copays


Health care answers in 60 seconds.


What are health care premiums, deductibles, coinsurance, and copays?


To better understand these terms, think of it like owning a car.


A premium is like your monthly car payment. You must make regular payments to keep your car, just as you must pay your premium to keep your health care plan active.


A deductible is the amount you pay for coverage services before your health plan kicks in. After you meet your deductible, you pay a percentage of health care expenses known as coinsurance. It's like when friends in a carpool cover a portion of the gas, and you, the driver, also pay a portion.


A copay is like paying for repairs when something goes wrong. When your car gets serviced, you pay a set fee to the mechanic, just as you may pay a set fee, like $20, when you go to the doctor because you're sick.


Every plan is different, so premiums, deductibles, coinsurance, and copays can vary in cost.


Health care question answered.