Deductible Medical Insurance

Deductible medical insurance is a type of health insurance that requires the policyholder to pay a certain amount of money out of their own pocket before their insurance coverage begins. This amount is called a deductible. In this article, we will discuss the basics of deductible medical insurance, its pros and cons, and answer some frequently asked questions.

How Does Deductible Medical Insurance Work?

Under a deductible medical insurance plan, the policyholder must pay their deductible amount before their insurance coverage kicks in. Once the deductible is met, the insurance company will pay for the covered medical services up to the policy’s limits. The deductible amount can vary depending on the policy, but generally, the higher the deductible, the lower the monthly premium.

For example, if a policyholder has a $1,000 deductible, they will need to pay the first $1,000 of their medical expenses before their insurance coverage begins. After that, the insurance company will pay for the covered medical services up to the limits of the policy.

It is important to note that certain medical services may not be subject to the deductible, such as preventive care and wellness visits.

Pros of Deductible Medical Insurance

There are several pros to having a deductible medical insurance plan:

Cons of Deductible Medical Insurance

However, there are also some cons to having a deductible medical insurance plan:

FAQ

What Is the Minimum Deductible for a High-Deductible Health Plan?

The minimum deductible for a high-deductible health plan in 2021 is $1,400 for individuals and $2,800 for families.

Can You Change Your Deductible Amount?

It depends on the policy. Some policies may allow policyholders to change their deductible amount during open enrollment or when renewing their policy.

What Happens If You Don’t Meet Your Deductible?

If you do not meet your deductible, you will be responsible for paying the full cost of your medical services until you reach your deductible amount.

What Medical Costs Count Towards Your Deductible?

Generally, any medical expenses that are covered by your insurance plan count towards your deductible, such as doctor visits, hospital stays, and prescription drugs.

Are There Any Medical Services That Are Not Subject to the Deductible?

Yes, some medical services may be exempt from the deductible, such as preventive care and wellness visits.

Conclusion

Deductible medical insurance can be a good option for those who want lower monthly premiums and have the ability to pay for higher out-of-pocket costs. However, it may not be the best option for those who need more comprehensive coverage or have chronic health conditions. It is important to understand the pros and cons of deductible medical insurance and choose a plan that fits your specific healthcare needs.