With Health Insurance What is a Deductible
With Health Insurance What is a Deductible
Deductible in health insurance is the sum you pay for insured health care services before your insurance plan begins to pay.
With a $2,000 deductible, for instance, you pay the first $2,000 of insured services yourself.
After you pay your deductible, you ordinarily pay just a copayment or coinsurance for insured services. Your insurance agency pays the rest.
While premiums are what it costs to have insurance, deductibles are what it costs to use it.
Especially for low- and middle-income families, these out-of-pocket costs are placing affordable health care further out of reach.
A December survey by Bankrate.com found only 37 percent of Americans have the savings to pay for an unexpected expense of even $1,000.
Others said they’d add it to credit cards, borrow from family or friends, or slash spending from other areas of their budget.
What’s more, insurance premiums are increasing at the same time.
A similar analysis found premiums for individual exchange plans increased by an average of 15.7 percent this year.
So not only is it more expensive to purchase insurance, but it’s also more expensive to use it.
What does a higher deductible mean for health insurance?
Between deductibles that can feel unmanageable and the hard-to-predict nature of medical bills, having health insurance can sometimes feel a bit like not having it.
You may consider yourself underinsured or “functionally uninsured” if you’ve got major medical insurance but still find it difficult to pay for healthcare due to a high deductible threshold.
If this describes your situation, you’re not alone.
Many insured Americans struggle to pay for medical care, whether due to large and unforeseen medical expenses or a high plan deductible beyond what they can afford to pay out of pocket.
So, how can you feel more adequately insured and better able to deal with medical bills you consider unaffordable?
Selecting a health insurance plan with the lowest annual deductible possible can be one solution; however, a lower deductible usually results in a higher monthly premium payment.
Regardless of what you decide now or in the future, remember there are coverage options that can make you feel more functionally insured.
What you choose will ultimately come down to balancing your household budget with your potential healthcare needs. In the months leading up to Open Enrollment, you can begin to gather quotes and research some of the solutions we can present to you.
Call us today and start saving!
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Email us info@mintcofinancial.com
