Co-Insurance, Deductibles, Premiums, and Non-Sufficient Funds

Co-Insurance,Deductibles, Premiums, and Non-Sufficient Funds

Co-Insurance,Deductibles, Premiums, and Non-Sufficient Funds

Co-paymentsand co-insurance differs as forms of cost sharing. One shares thecost of his or her heath care with that of the health insurancecompany. As a health provider, it is important to know thatco-payment or co-pay is the exact amount that a patient must pay fora specific service. For example, a health plan may demand 35 dollarsas co-pay for a visit to the doctor, and 10 dollars co-pay forfilling the prescription (Stahl, 2004). C0-insurance on the otherhand is the percentage deducted of the medical bill one is requiredto offset after pay any deductibles. For example, a medical bill maybe 800 dolls annually with 9 percent co-insurance. Once the medicalbill is paid, then the 9 percent will be paid for any new chargesincurred.

Asa medical officer, when there is denial of payment due tonon-sufficient funds, measure such as developing a well-structuredfinancial policy will aim at preventing such cases from occurring.Secondly, refusal of checks from patients will be inevitableespecially those that has history of signing bad checks.

Deductibleis defined as the amount one has to pay from the pocket for theexpenses incurred before the insurance company offset the remainingcharges. It is the amount of charges that is subtracted from aperson’s gross adjustable income so that the amount that is taxablecan be reduced (Stahl, 2004). As a medical doctor, I could advice thepatient to pay upfront since advice on cost-sharing the patientscould be pushed into paying high deductibles and co-insurances.

Premiumis recompense or a reward for a specific act. It is a sum that isabove or over the normal price that is paid chiefly as incentive orinducement. The patient may pay then the check may come back due tonon-sufficient funds, I could advise him or her to always carrybalances in the checking account in case there are issues of badchecks.


Stahl,M. J. (2004). Encyclopedia of health care management. Thousand Oaks,Calif: Sage Publications.