FAQs
The amount you pay for covered health care services before your insurance plan starts to pay. With a $2,000 deductible, for example, you pay the first $2,000 of covered services yourself.
What is the terminology deductible? ›
The amount of money that a patient with health insurance pays for health care services before the health insurance plan begins to pay.
What is the definition of a deductible? ›
Simply put, a deductible is the amount of money that the insured person must pay before their insurance policy starts paying for covered expenses.
What does 80% deductible mean? ›
You have an “80/20” plan. That means your insurance company pays for 80 percent of your costs after you've met your deductible. You pay for 20 percent. Coinsurance is different and separate from any copayment. Copayment (or "copay")
What are the different types of deductibles? ›
There are two types of health insurance deductibles: individual and family deductibles. A health insurance plan can have either one of these or a combination of the two. The individual deductible is straightforward, but the family deductible is more complex.
How do deductibles work for dummies? ›
The amount you pay for covered health care services before your insurance plan starts to pay. With a $2,000 deductible, for example, you pay the first $2,000 of covered services yourself. A fixed amount ($20, for example) you pay for a covered health care service after you've paid your deductible.
What is the best explanation for a deductible? ›
A deductible is a type of out-of-pocket payment. The insurance company only pays covered costs which exceed your deductible. By making claimants pay a certain part of the costs of a claim yourself, insurance companies protect themselves against excessive or abusive claims.
What best defines the term deductible? ›
A deductible is the amount you pay for out-of-pocket costs for your covered health care before your plan begins to pay. A deductible is different than a premium. A premium is the amount you pay, usually every month, to have health insurance.
What is another word for deductible? ›
What is another word for deductible?
| excess | initial cost |
|---|
| out-of-pocket expense | pre-determined amount |
| upfront payment | |
You pay a copay at the time of service. Copays do not count toward your deductible. This means that once you reach your deductible, you will still have copays. Your copays end only when you have reached your out-of-pocket maximum.
The benefits of a high-deductible versus a low-deductible medical plan. In 2023, health insurance plans with deductibles over $1,500 for an individual and $3,000 for a family are considered high-deductible plans.
What is a premium vs deductible? ›
Monthly premium x 12 months: The amount you pay to your insurance company each month to have health insurance. Deductible: How much you have to spend for covered health services before your insurance company pays anything (except free preventive services)
What if you don't meet your deductible? ›
What happens if you don't meet your deductible? If you do not meet the deductible in your plan, your insurance will not pay for your medical expenses—specifically those that are subject to the deductible—until this deductible is reached.
What is the most common deductible? ›
Car Insurance Deductible: Conclusion. A car insurance deductible is the amount you pay out of pocket before a policy covers your vehicle damage or medical bills. The most common deductible amount is $500, but often you'll have the ability to choose your deductible.
How is a deductible calculated? ›
Health insurance deductibles are calculated annually, with your expenses over the course of the year adding up until you've hit the limit. Once that happens, your insurance will begin covering some or all of the cost of medical treatment. The amount then resets every January 1.
What are the disadvantages of a deductible? ›
The downsides of a high deductible health plan are:
- Expensive. The upfront costs can be costly.
- High Payments. With a high-deductible health plan, your out-of-pocket costs may be higher. ...
- Avoiding Care. Those high payments for medical care might keep you away from checkups and other preventative measures.
The Latin deducere, meaning "to derive," eventually became the word deduct, meaning "to take away." In the mid-19th century, the word deductible was born, meaning something "may be deducted." As a noun, a deductible is something you pay, such as your insurance deductible.
What is an example of a deductible amount? ›
For example, if you have a health cover of Rs 5 lakh with a deductible of Rs 5000, the insurer will accept the claims if they are above this amount. Thus, if you spent Rs 10,000 on a covered medical treatment, you will pay Rs 5000 and the insurer will pay Rs 5000.
What does 30% deductible mean? ›
This means: You must pay $4,000 toward your covered medical costs before your health plan begins to cover costs. After you pay the $4,000 deductible, your health plan covers 70% of the costs, and you pay the other 30%.
