Confused by the jargon in your benefits package? In this episode, we break down the complex financial structures of U.S. health insurance. We start by distinguishing between the immediate costs of care, explaining how a deductible acts as the initial threshold you must pay out-of-pocket before your insurer contributes, and how co-insurance splits the remaining risk on a percentage basis—commonly 80/20—between the insurer and the insured. We also discuss copayments, which are fixed fees for services designed to discourage "moral hazard" and prevent the overutilization of medical care.

Later in the episode, we compare the three major tax-advantaged vehicles for medical spending:

• FSAs (Flexible Spending Accounts): We explore this pre-funded arrangement known for its "u ...