Private insurance costs
Let’s take a look at some standard insurance costs and how they work:
- Premium: This is the cost you pay for your health insurance plan every month. The monthly premium for the bronze or silver plan is lower. The monthly premium for gold or platinum plans is higher.
- Deductible: This is an out-of-pocket cost you pay before your insurance company starts paying its portion. As the cost of your deductible reduces, your premium increases. Payouts are faster with plans with lower deductibles [5] than with plans with high deductibles.
- Copayment and coinsurance: A copayment is an amount you owe out of pocket anytime you visit a healthcare provider. Coinsurance [6] is the total approved amount that you’ll pay for services after you have paid for deductibles.
Conclusion
There are many differences between Medicare and private insurance. The costs, plans, and coverage are the major differences between the two. Other factors, such as the medical condition you’re treating and how regularly you need Medicare care and prescription drugs.
References
[1] https://www.aarp.org/health/medicare-insurance/info-2018/part-d-prescription-drugs.html
[2] https://www.cms.gov/Medicare/Health-Plans/Medigap
[3] https://www.hhs.gov/answers/medicare-and-medicaid/what-is-medicare-part-b/index.html
[4] https://www.hhs.gov/answers/medicare-and-medicaid/what-is-medicare-part-a./index.html
[5] https://www.investopedia.com/ask/answers/071515/why-do-insurance-policies-have-deductibles.asp
[6] https://www.healthcare.gov/glossary/co-insurance/