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Deductible
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A deductible refers to the amount an insured person must pay for healthcare services before his or her insurance plan starts to pay. Deductibles are fixed dollar amounts, and may vary greatly from plan to plan.[1]
Overview
Before insurance plans start paying for healthcare services, individuals covered by plan must typically meet a deductible. A deductible refers to the amount an insured person must pay for healthcare services before his or her insurance plan starts to pay. For example, in an insurance plan with a deductible of $2,000, enrollees must pay 100 percent of the first $2,000 of healthcare service costs themselves before the insurance will start covering costs. However, even with deductibles, the insured may be eligible for a discounted rate for services based on their insurance plan and the prices that have been negotiated between service providers and the insurance company.[2][3]
Deductibles can vary greatly from plan to plan. Typically, plans with higher monthly premiums will have lower deductibles, and plans with low monthly premiums will have higher deductibles. Those who rarely use healthcare services may opt for a plan with a lower monthly premium, with the expectation that they do not use enough healthcare services to meet the deductible. Those who do anticipate using services may do the opposite and opt for a higher monthly cost with a low deductible, expecting to meet their deductibles quickly and have all or most of their remaining healthcare costs paid for through insurance.[2]
Deductibles may also differ for certain services with the same plan. A plan may pay for certain services, such as a checkup, even before the insured enrollees have met their deductible. A plan might also have a separate deductible for certain services, such as prescription drugs. Plans may also offer a family deductible, which applies to the whole family covered by the plan rather than an individual.[2]
See also
External links
Footnotes
