Comparing health insurance quotes can be an intimidating process. What exactly do the differences between different health insurance plans mean? Is a lower health insurance quote necessarily the one that will provide the best coverage? Before searching for health insurance quotes on the web or asking an insurance company for one, it helps to know the terminology of health insurance. The dollar amount per month is only one aspect of a health insurance quote. Knowing the jargon ahead of time can cut down on frustration and confusion while researching an insurance plan.

A typical health insurance quote will contain information on various aspects of the associated plan. The plan type is one of the most basic pieces of insurance terminology, and the most common types are PPOs and HMOs. A PPO works by reimbursing the patient or health care providers by specifying a network of approved health care providers for the patient to use. HMOs form health care systems of physicians, specialists, etc. and provide comprehensive health services to patients in exchange for a fixed, flat fee. Other kinds of insurance plans include POS (point of service) plans, a sort of HMO/PPO hybrid, and EPOs, a more restrictive variant of PPOs. All of these health insurance plans fall under the blanket category of managed care plans, which offer financial incentives for patients to use health service providers chosen by the plan.

Health insurance quotes will also show deductible dollar values. The deductible is a dollar amount, usually per year, that the insured person has to pay before the insurance company pays for subsequent covered services. There are also different types of cost-sharing in health insurance. Your health insurance quote may show a dollar amount for copayment, or a percentage amount for coinsurance. Copayment is a kind of cost sharing where the insured person pays a certain dollar when receiving a medical service; the insurance provider pays the difference between the copayment amount and the total cost. The cost sharing of coinsurance, on the other hand, requires the insured to pay a percentage of the cost of medical services after deductibles.

Obviously, each health insurance quote will differ in its terminology. A few more handy acronyms to know include the following: PCP, which stands for Primary Care Physician. TPA, is a third party administrator who handles the paperwork and bureaucracy of health insurance. MSA, is a medical savings accounts for the patient's out-of-pocket expenses. MPP, is a minimum premium plan negotiated between insurance companies and employers. And FSA, is a flexible spending accounts created by employers for employees to set aside money for medical expenses.