What are health insurance deductibles? That’s a general question in our circles. Health insurance deductibles refer to the amount of money you have to pay for your healthcare before your insurance cover starts handling the costs. These costs are deemed low enough for you to afford. The insurance cover will only kick in if your healthcare costs go beyond your deductible. Health insurance deductibles vary from one policy to another.
How Does Health Deductibles Work?
You have to keep in mind that health insurance coverage does not always cater to all your healthcare costs. In most cases, you will have to chip in and pay for some services. You’ll find that most healthcare insurance plans require you to share your healthcare costs with the insurer. The specifics of the insurance plan determine precisely how much you are supposed to pay, and what your insurer is supposed to pay.
Ideally, everyone wants to have low deductibles. Several factors determine how high or low your deductibles are. One of those factors is the premiums you pay. If you are paying high premiums, you can expect your deductibles below. Low premiums will cause your deductibles to be high.
You get to choose your deductible amount while you are applying for the insurance cover. The amount can range anywhere between $500 and $3000. Your deductible should be based on how much you feel you can afford to pay for your healthcare within a year. Even if your employer is providing your health insurance cover, you will still need to select a deductible amount.
When the insurance cover is for a family with several persons, you have to choose a deductible for each person, as well as an overall deductible. For instance, you can have a family cover where the deductible for one person is $400, and the overall deductible is $3000.
So, if your deductible is $400, and your first visit to the Doctor in that particular year costs $300, you’ll have to pay that in full since you have not exhausted your deductible yet. If you revisit the Doctor and this time you have to pay $400, you’ll pay the remaining $100 of your deductible, and your insurance plan will take care of the rest.
Keep in mind that not all services are subject to the deductible policy. It all depends on the specifics of your insurance policy. Does the deductible plan have any benefit for the insured? Some might wonder. It certainly does. The deductible ensures that your insurance cover is preserved for the time you need it most.
You need to carefully explore what you can or cannot afford before setting any deductibles. Talk to your health insurance provider so that they can guide you accordingly. Setting a deductible that you might not afford might cause you some difficult times in case any unforeseen health issues crop up. In essence, the deductible policy helps to ensure people do not take advantage of health insurance providers just because they have an insurance cover.