AIA - International Student Health Insurance

Health Insurance Terminology

Question #1: What is a deductible?
Answer #1: A deductible is the amount of medical expenses that the patient is required to pay before the insurance starts paying benefits.

Question #2: What is co-insurance?
Answer #2: Co-insurance is the percentage of medical expenses, after the deductible, paid by the insurance company versus paid by the patient.

    Example: UT Policy has $300 deductible, 80% co-insurance to $10,000, then 100%
                 Medical bills total = $1,000.
                 Insurance pays (.80)*($1,000 - $300) = $560
                 Patient pays $300 + (.20)*($1,000 - $300) = $440.

    Example: AIA Policy 1 has $100 deductible, 80% co-insurance to $10,000, then 100%
                 Medical bills total = $1,000.
                 Insurance pays (.80)*($1,000 - $100) = $720
                 Patient pays $100 + (.20)*($1,000 - $100) = $280.