If you don’t have health insurance, it may be difficult to afford medical treatment. When it comes to your insurance coverage, you may be forced to spend a lot more money than you thought in a short period of time.
But what about the deductibles on your health insurance? What is their mechanism of operation? Moreover, what can you do to make your life even better? There are several different types of health insurance deductibles, and we’ll guide you through each one and explain which one makes the most sense for you.
Let’s get started.
What is a health insurance deductible?
Before your health insurance company starts to contribute to the cost of medical care, you are responsible for paying a deductible. You must pay a monthly or yearly premium for health insurance, just as you do for other insurance. Health insurance premiums cost at least a few hundred dollars a month.
Do you know what your deductible is till then? When you sign up for your health insurance plan, you may choose how much of a deductible you want to pay out of pocket. Until you renew or re-enroll, you’re stuck with that deductible for the whole year.
How does a health insurance deductible work?
Let’s pretend you have a $1,000 deductible on your health insurance policy. Hence, if you get ill or injured, you first have to pay $1000 before the insurance company starts covering for you. Once you meet your deductible, your coinsurance kicks in and assists with the remainder of the medical expenses, and you will incur less cost in the future.
Most insurance plans include preventive services such as screenings and vaccinations. Fortunately, they are unrelated to your deductible, and you’ll receive them for free.
How Do I Decide on the Right Amount for My Health Insurance Deductible?
It ultimately boils down to your general health or the health of anyone whose medical expenses you want to cover with your insurance plan. Let’s imagine you’re young and healthy, and you don’t expect any major medical expenses in the next year. You’d do well to enroll in a high-deductible health plan (HDHP). Why? You’ll save a lot of money for starters since your premiums will be reduced.
On the other hand, here’s another situation. Suppose you have an existing medical condition, your spouse is expecting a baby soon, or you have young children who participate in sports. In either case, you’ll have to incur considerable medical costs in the future. Choosing a smaller health insurance deductible would be the best option in such a case.
Types of Health Insurance Deductibles
Deductibles can vary according to the plan type. Here are some different deductibles you should know about.
A comprehensive deductible is one where the deductible is applied to all types of medical coverages in your health plan.
In this type, the deductible is not applied to all medical coverages. You can get some services without paying the deductible cost.
Individual or Family Deductible
Each family member may have an individually different deductible, or there could be one specific family deductible. The benefit of a family deductible is that everyone in your family would contribute towards it.
You can have separate deductibles if you receive healthcare from an in-plan or out-plan network. Furthermore, even your prescription drugs plan may have a separate deductible.
Can adjusting your health insurance deductibles save you money?
Yes, that’s exactly right! Increasing your health insurance deductible may allow you to reduce your monthly premiums and out-of-pocket costs. Before you do anything else, keep track of how frequently you’ve been to the doctor and how many prescription pills you’ve had to buy in the previous few years. If you’re part of a family plan, the same rules apply.
Find the Right Insurance for Your Needs!
Till now, you should be aware of all the intricacies revolving around health insurance premiums. Since it can get too complex, it’s better to consult with an experienced healthcare professional before choosing a plan. If you’re looking for health plans, reach out to New Health Insurance to get free customizable quotes from top lenders.