What is Health Insurance:
Health Insurance is a contract between an individual and an insurance company that allows parties to share risk.  Basically, an individual pays their premiums in exchange for teh Insurance Company's commitment to pay for all medical expenses after the insured has met their deductible or out-of-pocket maximum.

How does Health Insurance work?
The insured (you) pays the insurance company a premium depending on their predetermined individual, group, or familiy plan.  In exchange, the insurance company will pay for any or all qualified medical expenses.  Any non-qualified medical expenses are paid for by the individual until the individual has reached their yearly deductible.  Once the deductible is met, the insurance company will be responsible for all or a predetermined percentage (if you have coinsurance) of medical expenses.  Once the out-of-pocket maximum is met, the insurance company is responsible for all medical expenses for the rest of that fiscal year.

What types of Health Insurance are available?

What is Coinsurance?
Coinsurance is the portion of medical costs that are shared by both the insured (you) and the insurance company. 
For Example;
If you have an individual policy with a $300 deductible and a $940 out-of-pocket maximum on an 80%/20% plan, the insured is responsible for paying for the first $300 in medical expenses (the deductible).  After the deductible is met, the insurance company will pay for 80% of medical expenses while the insured is responsible for the remaining 20%.  Once the $940 out-of-pocket maximum is met by the individual, the insurance company will pay 100% of medical expenses for remainder of the calandar year. (The alternative to coinsurance is to have the insurance company pay 100% of medical expenses once the deductibel is met, which usually results in a higher premium.)

What is the difference between a deductible and an out-of-pocket maximum?
A deductible is the predetermined price at which you have to pay medical expenses at full cost.  The out-of-pocket maximum is the predetermined, maximum about you have to pay before the insurance company will pay the full cost of your medical expenses for the rest of that calandar year.

Does it cost more to deal with an agent than directly with an insurance company?
No.  There are no extra fees for working with an agent.  Agents are approved by insurance companies to sell their products and are required to represent them fairly and accurately.  The benefit of dealing with an agent is that you get a fair analysis of all your options because they work with several different insurance companies. 

How do I choose a Plan?
Since there are so many insurance companies and different plans available, choosing the right plan for your individual needs can be confusing.  If you are:

• unemployed, self-employed, or not covered by your employers group plan, we can set you up with an individual or familiy policy to fit your needs.
• an employer looking to set up group insurance for your employees, we can custom design and implement employee benefit plans to best fit the needs of you, your company, and your employees.
•  unsatisfied with your current group or individual plan, we can help you find the right plan, or custom design one to satisfy your needs.

What is the difference between Group Insurance, an individual plan, and a family plan?
Group Insurance is a policy that an employer applies for with an insurance company for two or more families or individuals.  The plan is then available to all employees who work a designated amount of hours.  Usually, the employer is required to pay a certain percentage of portion of the employee's premium.  Individual insurance is available to uninsured individuals.  You can either apply for individual coverage (the policy only covers the individual medical expenses), or family coverage (the policy covers all members of the applicants familiy).

Back to The Basics

Health $avings Accounts, Inc.
Boys & Tyler Financial Group, Inc.
7700 Equitable Drive, Suite 204
Eden Prairie, MN 55344
Phone: (952) 937-0400 (Boys & Tyler Financial Group)
Phone: (952) 937-0669 (Health $avings Accounts)