Get Covered Illinois: Which costs count for health insurance and why mileage isn’t one of them

All of these are costs associated with health insurance EXCEPT:

• A. Premium
• B. Deductible
• C. Mileage
• D. Copayment

Answer: (C)

Mileage is not a cost associated with health insurance. The primary expenses related to health insurance typically include premiums, deductibles, and copayments. Premiums are the regular payments made to maintain health insurance coverage. Deductibles represent the amount an insured person must pay out-of-pocket for healthcare before their insurance starts to contribute. Copayments are fixed fees that insured individuals pay for specific medical services at the time of receiving care, such as a doctor's visit or prescription medication. In contrast, mileage pertains to travel expenses incurred when visiting healthcare providers, and while it can be a financial consideration for patients, it is not a cost that forms part of the health insurance structure itself.

Understanding health insurance costs: what’s inside the plan and what’s outside

If you’ve ever read a benefits summary and felt a little overwhelmed, you’re not alone. Health insurance is full of moving parts, and the numbers on paper don’t always match up with what you end up paying in a month, a year, or when you actually need care. A quick way to wrap your head around it is to separate what the plan requires you to pay from what you might pay out-of-pocket for care itself. Here’s the real-world breakdown that helps many people by line of cost.

What costs do we usually see with health insurance?

Let’s break down the common costs you’ll hear about when you’re choosing a plan or comparing options. Think of these as the main levers that influence your out-of-pocket spending.

• Premiums: The monthly fee

• Deductibles: Your first big hurdle

• Copayments (or copays): The fixed fees at the point of service

• Coinsurance: A percentage you pay after meeting the deductible (optional to mention, but it’s part of many plans)

• Mileage: Travel costs to the doctor’s office (not a plan cost)

Here’s the key point: g enerally, mileage—the travel you rack up to get to a clinic or hospital—is not an insurance cost. It’s a real-world travel expense, much like gas for your car or bus fare. It’s separate from what your health plan charges, which is why mileage isn’t listed among the costs that “come with” the policy itself.

Premiums: the monthly payment you commit to

Let’s start with the most familiar term: the premium. This is the amount you pay every month to keep your health plan active. It doesn’t matter how often you use the plan or what services you need; the premium is due on a regular schedule. In some cases, subsidies or employer contributions can lower this amount, but for many people, the premium is a fixed monthly cost.

Why it matters for your budget: the premium is your baseline cost. It’s what you’re paying whether you stay perfectly healthy or you end up with a big medical bill later. When you’re comparing plans, a lower premium might be appealing, but it could come with a higher deductible or larger copays. The balance you strike depends on your health, your risk tolerance, and how often you expect to use healthcare services.

Deductibles: paying a chunk before coverage kicks in

Next up is the deductible. Think of the deductible as your “start line” for most services to be covered by insurance. Until you’ve paid that amount out of pocket in a given year, your plan typically doesn’t contribute much toward most services (except for things like preventive care, which some plans cover at no cost to you). Once you reach the deductible, your plan starts sharing costs more generously.

A few practical points:

• High-deductible plans often come with lower premiums but require more out-of-pocket spending before the insurer pays.

• If you expect a big medical event or ongoing treatments, a plan with a lower deductible could reduce surprise bills, even if the monthly premium is higher.

• Deductibles are annual. If you switch plans during open enrollment, you reset the deductible, and that big “first hit” can feel tangible all over again.

Copayments: small, predictable costs at the time of care

Copayments (copays) are the fixed amounts you pay when you receive a service. For example, you might pay $20 for a primary care visit or $15 for a prescription at the pharmacy, with the insurer covering the rest after you’ve met your deductible or according to the coinsurance arrangement.

Why copays are handy to know: they give you a rough sense of how much you’ll spend per visit or per medication, which can help you budget. Copays are often lower than the total cost of the service, and in many plans they apply even if you haven’t met the deductible yet, depending on the service and the provider network.

A quick tip: some plans tweak copays by service type. A visit to a specialist might carry a higher copay than a visit to your PCP. Prescription drug copays can also vary by drug tier, which is why it helps to look at the formulary (the list of covered drugs) and the tier structure when you’re comparing plans.

Where does mileage fit in?

Mileage—the distance you travel to see a doctor, go to the hospital, or visit a lab—feels like a hidden cost of care, especially if you live far from the nearest provider or if you juggle multiple appointments. But crucially, mileage isn’t a cost of the health insurance policy itself. It’s an out-of-pocket expense tied to your transportation, not to the policy’s pricing structure.

That distinction matters for two reasons:

• When you’re evaluating plans, keep mileage out of the “cost” box. It won’t show up on your premium, deductible, or copay statements.

• If you’re budgeting, consider mileage as part of your overall healthcare cost, but categorize it as travel or transportation rather than insurance cost. In some cases, you might be eligible for mileage reimbursement through particular programs or financial assistance, especially if you have a long commute for essential medical care. Check with local resources or patient-assistance programs to see what’s available.

Putting it all into a simple example

Say you’ve got a plan with:

• Premium: $300 per month

• Deductible: $2,000

• Primary care visit copay: $25

• A common prescription drug copay: $15

If you stay generally healthy, you might pay your monthly premium and a small copay here and there, plus the occasional out-of-pocket for a non-preventive service until you hit the deductible. Your yearly paycheck could feel the premium every month, and the deductible would loom only if you have a medical need that triggers it.

Now, imagine you have a 40-mile round-trip to your doctor. The cost of fuel, parking, or rideshare adds up. That is a real, unavoidable expense, but it isn’t counted as part of the insurance policy’s price tag. It’s important to plan for it in your personal budget, especially if you have multiple appointments or limited transportation options. This distinction helps you avoid double-counting costs when you’re comparing plans.

How Get Covered Illinois can help you sort this out

Get Covered Illinois is a resource many Illinois residents turn to when they’re trying to understand their options and make sense of costs. The goal isn’t to trap you in jargon, but to empower you to compare plans in a way that matches real life.

• Clear explanations: You’ll find layperson-friendly explanations for terms like premium, deductible, copay, and coinsurance, plus guidance on what each cost means for your monthly budget and your healthcare needs.

• Plan comparisons: The platform makes it easier to compare plan features side by side. You can see how a plan with a lower premium might shift more costs to you in the form of a deductible or higher copays.

• Tools to estimate costs: Some resources help you estimate your annual costs based on typical care usage. This can be a game-changer for people who want to project out-of-pocket spending without guessing.

• Help when you’re stuck: If you have questions about coverage, their helplines or chat options can connect you with knowledgeable folks who know Illinois plans well.

A practical mindset for choosing wisely

• Consider your health needs: Do you visit a doctor regularly? Do you take prescription meds? Are you managing a chronic condition? The answers guide how you balance premium versus deductible and copays.

• Think about household costs: If you’re choosing for a family, you’ll want a more predictable expense pattern, which sometimes means a higher premium but lower out-of-pocket costs overall.

• Don’t forget about the out-of-pocket maximum: Some plans cap what you’ll pay in a year. That ceiling can be a lifesaver if you encounter a serious health event.

• Look at networks: If your preferred doctors or clinics are in-network, your costs can be much lower than if you stay out-of-network. Network familiarity can ease the financial stress in a tough moment.

A few quick reminders to keep in mind

• Mileage isn’t a plan cost. It’s travel cost to care. Treat it as transportation rather than a direct outlay of your insurance policy.

• Premiums, deductibles, and copays are the core costs that determine how much you’ll pay as a policy holder.

• Don’t skip preventive care. Many plans offer preventive services at no extra cost to you, which can help you stay healthy without paying extra out-of-pocket—an ounce of prevention can save a pound of costs later.

• If you’re juggling options, take a breath and map out a rough yearly plan: how many visits, how many meds, and what distance you’ll travel. It pays to foresee the path you’ll actually walk, not just the numbers on a sheet.

Bringing it home: why this matters

Understanding where those costs come from isn’t just about math. It’s about being ready when life throws a medical curveball. It’s about the peace of mind that comes from knowing you can get care without wondering where the money will come from. And it’s where resources like Get Covered Illinois can be a real ally—helping you translate the jargon into choices that fit your life.

If you’re curious to learn more or want to compare local options, exploring Get Covered Illinois can be a good next step. You’ll find guidance tailored to Illinois residents, a helping hand through the maze of plan names and numbers, and a clearer picture of how the pieces fit together in a way that makes sense for you and your family.

A closing thought—and a gentle nudge to keep things simple

The world of health insurance costs can feel like a jumble at first glance. Premiums, deductibles, and copays each play a different role, and mileage sits neatly outside the insurance box as travel cost. When you step back, the picture becomes clearer: you’re balancing monthly payments, your potential out-of-pocket exposure, and the predictable fees you pay at the point of care. Bring your real-life routine into the equation, and you’ll find a plan that aligns with how you live, not just how you’d like to game the numbers.

If you’d like, I can help you walk through a hypothetical scenario tailored to your situation, using general figures for Illinois plans. We can map out a few different plan structures and show how the costs shift with changes in healthcare needs. It’s a practical way to see how premium, deductible, and copays come together—and why mileage, while important, remains a separate travel consideration rather than a core insurance cost.

In the end, the right coverage is the one that fits your life—today, tomorrow, and the months ahead. And with clear guidance from reliable resources, you’ll navigate it with confidence rather than confusion.