Understanding Deductibles on Health Insurance

Understanding Deductibles on Health Insurance

A deductible on health insurance is the amount of money that you are required to pay out of pocket for covered medical services before your insurance plan starts to pay.

For example, let's say you have a health insurance plan with a $1,000 deductible. If you receive medical services that cost $800, you would need to pay the full $800 out of pocket because it is below your deductible. However, if you receive medical services that cost $1,200, you would need to pay the first $1,000 (your deductible) and then your insurance would cover the remaining $200.

Deductibles can vary depending on your insurance plan, and typically, plans with higher deductibles have lower monthly premiums and plans with lower deductibles have higher monthly premiums. It's important to understand your deductible so you can budget for potential medical expenses.

By understanding how deductibles work on health insurance, you can make informed decisions about your healthcare and financial well-being. Always review your insurance policy details to know the specifics of your deductible and coverage.