Your health plan is an important safety net. Without it, you would be solely responsible for paying all your healthcare expenses. With it, though, you’re protected from facing the full cost of care on your own.

But while insurance makes healthcare more affordable, the process can feel complex. Between premiums, deductibles, copays, coinsurance, and out-of-pocket maximums, it’s easy to feel overwhelmed.

This video breaks down how health plans inform the costs people actually pay for their healthcare. You’ll learn:

• What a premium is and why you pay it
• How deductibles affect your healthcare costs
• The difference between a copay and coinsurance
• What an out-of-pocket maximum is and what happens once you’ve reached it

Want to learn more about how health plans work? Check out the other videos in our Health Plan Basics series.