Final answer:
A person code is a unique identifier on a patient's insurance card. Insurance costs include deductibles and co-payments or co-insurance rates, with specific plan structures such as fee-for-service or fixed-amount HMO plans. Understanding these terms is essential for managing healthcare expenses.
Step-by-step explanation:
When looking at a patient's insurance card, a(n) person code is a unique 9-digit number that designates the insurance holder. Understanding insurance costs is crucial for patients, these can be complex since plans often include a deductible, which is an amount policyholders must pay out-of-pocket before coverage begins.
For example, a deductible might be $1,000, meaning the patient is responsible for that amount of their health expenses. Furthermore, health plans may require cost-sharing, such as co-insurance or co-payment, where the insured pays a portion of the costs. Co-insurance might be 20%, with the patient paying this percentage and the insurer covering the remaining 80%. Alternatively, a co-pay might be a fixed fee like $20 for a regular office visit or $250 for an emergency room admission. Knowing the specifics of one's own insurance plan, including fee structures like fee-for-service and subscriptions to a health maintenance organization (HMO), which provides care for a fixed amount regardless of service frequency, is essential in managing healthcare costs and understanding insurance coverage.