Understanding Your Prescription Insurance: MOOP, MAB, Deductibles Definitions

70 NEWS JAPAN - Very few people read the literature that comes in the mail regarding their prescription benefits. First things first, start reading it! Not only will it save you headaches later, it will allow you to maximize your benefits and save you money.

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This literature usually comes in the form of a benefits booklet or packet that is mailed to your home. It will summarize your prescription and medical plans. I will only cover prescription plans in my hubs. These booklets will give you the breakdown on the things that are allowed on your plan, the copays and coverage provided by your plans, id cards, and services provided.

It can be a lot to digest and usually hard to understand. This is why you have a customer service number on your id card. Call that number and get your questions answered.

Definition: The amount of money the participant is required to pay out of pocket at 100% of the cost, before the insurance benefits go into effect. This is an amount that is determined by your plan.

This is a word you probably know very well if you have prescription insurance. It is wise to know if you have a deductible on your prescription plan, because you must pay that amount, full cost of your prescriptions until met. Once you meet that amount your copays or prescription coverage will start. Not all plans have a deductible, but it is good to know if you have one, so you can prepare for the costs of your prescriptions.

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High deductible plans - Usually these plans have a lower premium, which makes them appealing to consumers looking for the lowest monthly rates for their plans. However, it means you must pay more out of your pocket before your insurance will pick up any claims. Be aware of what you are getting yourself into. Its best to evaluate your prescription needs before making a decision solely based on premium costs.