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Nov 14, 2023

Health Insurance Terminology for Lyft Drivers

As a Lyft driver, it's important to understand the health insurance options available to you. Navigating the world of health insurance can be overwhelming, especially with all the terminology involved. In this blog post, we will break down some of the key health insurance terms that every Lyft driver should know.


1. Premium

The premium is the amount you pay each month to maintain your health insurance coverage. It's important to budget for this expense as it can vary depending on the plan you choose.


2. Deductible

The deductible is the amount you must pay out of pocket before your insurance coverage kicks in. For example, if you have a $1,000 deductible, you will need to pay $1,000 for covered services before your insurance starts paying.


3. Copayment

A copayment, or copay, is a fixed amount you pay for certain services, such as doctor visits or prescription medications. Copayments can vary depending on the service.


4. Coinsurance

Coinsurance is the percentage of the cost of a covered service that you are responsible for paying. For example, if your coinsurance is 20%, you would pay 20% of the cost while your insurance covers the remaining 80%.

Out-of-Pocket Maximum

5. Out-of-Pocket Maximum

The out-of-pocket maximum is the most you will have to pay for covered services in a given year. Once you reach this limit, your insurance will cover 100% of the cost for the rest of the year.


6. Network

A network refers to the group of doctors, hospitals, and other healthcare providers that have agreed to provide services to members of a specific health insurance plan. It's important to choose a plan with a network that includes providers you prefer.


7. Preauthorization

Preauthorization is the process of obtaining approval from your insurance company before receiving certain services or treatments. It's important to check if preauthorization is required for any procedures or treatments you may need.


8. Formulary

A formulary is a list of prescription drugs covered by your insurance plan. It's important to review the formulary to ensure that any medications you take are covered.

In-Network vs. Out-of-Network

9. In-Network vs. Out-of-Network

When a provider is in-network, it means they have a contract with your insurance company to provide services at a negotiated rate. Out-of-network providers do not have a contract and may result in higher out-of-pocket costs for you.

Open Enrollment

10. Open Enrollment

Open enrollment is the period during which you can enroll in or make changes to your health insurance coverage. It typically occurs once a year, but there may be special enrollment periods for certain life events.

Understanding these health insurance terms will help you make informed decisions about your coverage as a Lyft driver. Remember to carefully review the details of any health insurance plan before enrolling to ensure it meets your needs.

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