How Does Health Insurance Work?
Health insurance works by sharing medical expenses between you and the insurer rather than requiring you to pay the full bill on your own.
When care is needed, expenses are first applied to your deductible, then split through coinsurance, until your out-of-pocket limit is reached and the plan covers additional eligible expenses.
Use a sample medical bill below to see how these components work together to determine what you can expect to pay versus what the health plan covers.
Simulate the Performance of Health Insurance
Move the slider to see how your out-of-pocket cost can be limited by your plan’s deductible, copay/coinsurance, and out-of-pocket maximum. Example math only. Official math depends on network status, covered services, copays, prior authorization, and billing rules.