Final answer:
An inquiry into the maximum dollar amount an insurance company will pay for a procedure is called an insurance estimate. This involves understanding terms such as deductibles, copayments, and coinsurance, which are essential for managing healthcare expenses.
Step-by-step explanation:
The inquiry into the maximum dollar amount that will be paid for a procedure by an insurance company is called an insurance estimate. When it comes to health insurance, individuals often have to understand terms like deductibles, copayments, or coinsurance.
Deductibles are the amounts that a policyholder pays out-of-pocket before the insurance company contributes towards the costs. A copayment, commonly known as a co-pay, is a fixed fee paid by the policyholder before receiving certain services, while coinsurance is the percentage of costs that the insured is responsible for after the deductible is met.
Understanding these terms is essential for policyholders to effectively manage their healthcare expenses and ensure they are not surprised by unexpected bills. Insurance estimates help individuals anticipate potential out-of-pocket expenses for prescribed medical procedures or services.