What's an OOP? and other Financial Terms

What is a premium?

A premium is the amount paid to an insurer, typically per month, for a health plan. If you have coverage through work, your employer typically pays part of your premium. You can save on premiums by choosing to ...

What’s a deductible and why is it important?

One of the first choices you’ll encounter in selecting health coverage is choosing a deductible amount. Usually, choosing a higher the deductible can lower your premium or other factors. A deductible is the amo...

What is coinsurance?

Coinsurance is your share of the costs for a covered health care service, calculated as a percent of the allowed amount for the service, often for more significant services such as a hospital or out-patient pro...

What is a copay?

A copay is a fixed amount you pay for covered services, usually when you receive the service, not typically dependent on meeting your deductible. The amount can vary by the type of covered health care service. ...

What is an out-of-pocket (OOP) maximum?

This is the total amount you’ll have to pay during a policy period, typically a year, before your health insurance starts to pay 100% for covered essential health benefits. Costs that contribute to your out-of-...