How do health insurance deductibles work?
Health insurance is a must have. There are many things in life one can go without, but get caught without health insurance when you need it and risk acquiring mounds of medical bills. You can find many different policies for health insurance. It is best to thoroughly research all healthcare coverage as well as any regulations it has before deciding which coverage to go with.
Basically, all health insurance works the same way. You pay a monthly fee to maintain coverage and when you need to use a health care service you pay a co pay. Most all health insurance coverage has a deductible. What is a deductible and how do health insurance deductibles work, you ask? Well, typically a deductible is a set amount your health insurance company declares must be met before any benefits from the health insurance policy will be provided.
For instance, perhaps your health insurance policy has
a set 400 dollar deductible per member. This means that, for each person you carry health insurance for, four hundred dollars must be paid out of pocket before insurance will provide the percentage of health coverage it has quoted. Some insurance companies will pay 100 percent once the deductible is met and others will declare a different amount such as 80 percent.
There are some procedures or doctor visits that may not require meeting your deductible before benefits are paid. The deductible is yearly, meaning each year you will need to meet the set deductible before benefits are paid. The amount you paid toward your deductible this year will not count towards next year. Some insurance companies provide a maximum family deductible.
This may sound like health insurance does not provide much when you pay monthly fees and then have to meet a required deductible before benefits are paid; however, it is essential for hospitalizations. A basic hospital bill can run around ten thousand dollars. When compared to that amount, a 400 dollar deductible doesn't seem like much anymore.