What Does Deductible Mean in Health Insurance
Yes, that is what it means. If there is a $1000 deductible, it means you pay the first $1000 of health care expenses out of your own pocket. After you've paid $1000 out of pocket, the insurance starts paying their percentage of the costs. Some insurance programs have exceptions to the deductible. Some health insurance policies have different deductibles for different types of medical care. For example, a prescription deductible refers to the amount of out-of-pocket money a policy holder must spend on medication before the plan's coverage begins. A health insurance deductible works in a similar way to auto insurance. For example, if you get into a fender bender on the way to work, you have to pay your deductible amount and then your insurance company pays the rest. Health insurance is the same way. Simply put, a plan's deductible is the amount of money that the policyholder must pay in health care costs before the insurer will begin to cover any claims. However, a deductible consists only of out-of-pocket expenses. If a $135 prescription costs you $25 in co-pay, only the $25 go toward your deductible. Hi there, The deductible you pay in health insurance refers to the amount of money that you pay out of pocket each year before your health insurance will start to cover your medical expenses. The important thing to note is that deductibles don’t necessarily apply to all medical services. Your health insurance deductible is the amount of money you need to cough up before your insurance company starts covering their share of the bill or reducing your co-pays. Some have separate deductibles for health care and prescriptions. When shopping for health insurance plans, pay close attention to the size of each plan's deductible. Simply put, a plan's deductible is the amount of money that the policyholder must pay in health care costs before the insurer will begin to cover any claims. A Dr. Michael Roizen, MD, Internal Medicine, answered. Your health insurance deductible is the amount of money you need to cough up before your insurance company starts covering their share of the bill or reducing your co-pays. Some have separate deductibles for health care and prescriptions. Yes. The deductible is the amount that YOU must pay before the policy kicks in. However, often times there are types of care that are NOT subject to the deductible, and instead require a co-pay. For example: You may have a policy with a $1000 deductible, but a $20 co-pay for a doc visit or prescription. Claim-Specific Deductibles. Some health insurance policies have different deductibles for different types of medical care. For example, a prescription deductible refers to the amount of out-of-pocket money a policy holder must spend on medication before the plan's coverage begins.
Amount paid each year before health insurance starts to cover the medical expense