When you first enroll in a new health plan you'll have a lot to read. Health insurance can be a tricky subject in and of itself, and the terms it uses may be new to you. If you are confused by some of the terms used in your policy, you're not alone. But it is crucial to learn the language to know what is covered and what is not

Health insurance is a type of insurance policy you pay into, that later helps you cover a portion of your medical or healthcare costs. As with most forms of insurance you pay a basic premium each month. This payment is pooled into a fund that the company uses to pay claims. Your contract will have many rules. They might include rules about what doctors or providers you can visit, how much you must pay upfront, what portion of total costs the insurer will cover (and what portion is yours to cover), and more. When you need to schedule healthcare, you or the care provider you visit will remit a claim to the insurance company for service you received. The insurance company then pays the claim, to the degree stated in your contract. Chances are you will receive a bill for some of the payment as well.

There are a vast number of healthcare plans out there, each with a wide range of features that may differ from one to the next. Levels of coverage can vary a great deal as well, so make sure you know what types of care your own policy covers, and how much it will cost you at each step.