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Health Insurance Deductible

Updated on December 29, 2013
Health Insurance Deductible Pills
Health Insurance Deductible Pills

Health Insurance Deductible

Health Insurance Deductibles are one of the methods that insurance companies employ in order to reduce or minimize the costs that they charge you for their services. Insurance Deductibles cause the individual who is being protected with a health insurance policy to pay a defined amount for their health coverage before the insurance company is forced to pay out any money. This amount that the customer has to pay will dramatically affect how much the consumer, you, pays in the end. This is because the higher your deductible the less chance that the insurance company has to pay anything, but it works the other way too. If you have a low deductible then there is a greater chance that the insurance company will have to pay for your medical care. So, if you have a high deductible there is a good chance you pay a low monthly rate for your health coverage or insurance.

What is a Deductible?

Not all health insurance policies have a deductible, but most do. So if your plan has a deductible then the person who is being insured is required to put forth a certain value of currency before the company who you are paying to insure you will actually do anything for you. Kind of sucks, right? But it helps to keep the rates lower as explained before and most often when you are seriously injured bills will easily clear the deductible and will save you a lot in the long term. So let's do an example to make sure I explained everything in an easy to understand way. If you have a $1000 deductible for lets say, general hospital and surgical care, then you will have to pay the first $1000 of general care and any surgeries you undergo. However, once you are done with that payment of $1000 anything after that is FREE! Remember though, there are rules and restrictions when buying health insurance. Be sure to understand what you are being covered for and what services the deductible applies to. It is possible to be tricked if you don't pay attention to the fine print. So, make sure you always understand what you are signing up and paying for otherwise you may be sorely disappointed.

Difference Between Health Insurance and Co-Pays

What is the Difference Between Health Insurance and Co-Pays?
What is the Difference Between Health Insurance and Co-Pays?

Difference Between Insurance Deductibles and CoPays

Let's start this off with something important- Health Insurance Deductibles and Co-Pays are not, never, no, nope, not even that one time, the same thing. Your Insurance company will have at least two things for you. You will get a price for co-payments and a price that you pay which is the deductible. Let's do another example. Let's say you have a $50 co-pay and a $500 deductible, this means that the person who is being insured has to pay at least $500 of health care before they get anything out their Health Care Provider. However, after the $500 is paid the insured is still responsible for the $50 co-pay which he or she must pay EVERY TIME they file a claim under the insurance policy in question. So, nothing is ever really "Free". However, the other big things, like thousands of dollars in surgery or medicine are paid for by the Insurance Company when you pay your deductible... just not that dang old little co-pay. Darn.

Health Insurance Deductibles for Different Types of Insurance

Now, the majority of health providers are going to have varying degrees of deductibles from which you can choose and these also vary from category to category. So let's do one more example. If you have selected a $1000 deductible for one area such as general hospital visits you are going to have to pay that money for every hospital visit until you reach the $1000 mark after which you will be paid for by your insurance company. On the other hand if you have a mere $250 deductible which goes towards prescription medicine then you only need to pay $250 before you medication prescribed by the doctor is free of charge. So, be careful like I said earlier. You don't want to spend money at the hospital thinking you are insured for what you are buying and found out later that you weren't! Make sure you think about what you are going to be using the most and try to get the lowest deductible in that area opposed to having a high deductible in what you buy and having a low deductible for services you never touch. It's just logic people, but be careful the insurance companies can be tricky tricky beasts.

Raising Insurance Deductibles to Lower Costs

It is a fact that most of the companies you deal with who sell insurance want a higher deductible... and who can blame them? They make more money more consistently if they don't ever have to pay you out. So, why would YOU ever want a higher deductible? Well, you may want a higher deductible if the company who is providing health coverage will offer you a lower monthly premium in exchange for that higher deductible. So, if you don't think you will be using your health insurance, but aren't so confident that you think you still need it... consider a higher deductible because you may end up saving lots of money (thousands of dollars) a year if you don't get hurt and if you really get injured or illness strikes you down the insurance will still cover anything past that deductible which you pick. It's a bit of a gamble in some cases, but having imperfect insurance is better than having none at all. And, in the case that you don't get sick or hurt and you chose a lower monthly rate with a higher deductible you just saved a lot of money. So, best of luck on your journey to picking health insurance and I hope you now understand insurance deductibles!

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Fitness is the Best Insurance

Some people say that staying in shape and taking care of your body is the best type of insurance for the future and I have to agree. Health insurance is best when not used, even though you probably feel like you're wasting your money when you don't get sick or hurt ever. But think about it, the healthier you are, Insurance Companies are going to take that into consideration and lower your rates when compared to someone who is more prone to illness or injury. Give the Insurance companies one more reason to lower your rates and make yourself healthier, which will in turn make you feel better (trust me, I've not always been the fitness guy I am today). You can learn a lot online and be healthier in no time at all. Sites like Bent Over Barbell Row offer a general overview on fitness and specific instructions on a powerful weightlifting exercise which is one of my favorites. Something like this can shoot your level of fitness up sky-high!

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