Health insurance has been the focus of concern for many people lately. The economy has been in a slump but health problems and premiums seem to be on the rise. Health insurance facts that make for a smarter consumer can be learned by anyone. In fact it is not nearly as complicated as it sounds. Health insurance deductions can also make a difference in year-end finances and the bottom line is what being a smart consumer is all about.

Insurance terminology explanations will make it easier to decide on what type of health policy would fit the family needs best. There are many terms on a policy, but the most important health insurance facts are in the deductible and out-of-pocket expenses.

The deductible is what the policy holder must pay before the insurance company will start paying. A higher deductible means a lower premium and of course the lower deductible will bring higher premiums. The family budget and the health of family members should be taken into consideration when making these decisions.

If family members are healthy and only go for yearly checkups, the higher deductible and lower premium policies should be good. But if anyone in the family has illness often, or chronic conditions, the policy with the lower deductible is probably the best policy.

Out-of-pocket expenses are the amount paid that the insurance company does not cover. Most insurance policies cover 70 to 80 % of the bill and that leaves the rest of the amount to be covered by the policy holder. That amount would be considered part of the out-of-pocket expense. There will be a cap on each policy to how much out-of-pocket must be paid. Once this cap is met, the insurance company will pay 100 %.

If the out-of-pocket expenses meet the maximum this will possibly be one of the health insurance deductions that could be taken at year-end. Also, keep good records so that all expenses will be on-hand and easy to find.

The out-of-pocket expense is sometimes referred to as co-insurance. This is not to be confused with the term co-pay. A co-pay is the amount you pay for a routine office visit. Each policy has a set upfront payment for the doctor visit. They will usually also have a co-pay set up for any emergency room visit too.

Knowing the terms and health insurance facts will help to make an informed decision for choosing a health insurance policy. To get more questions answered contact an insurance agent or the customer service center of the insurance company. They will be more than willing to help. A little research will get the best buy and best coverage for today's smart consumer.