If your health insurance comes with one or more deductibles, you'll end up paying a few hundred dollars to several thousand dollars if and when you need medical care. Understanding what this deductible is, how it works, when you have to pay it, and when you don’t have to pay it is part of using your health insurance wisely.
What Is a Health Insurance Deductible?
Your deductible is a fixed amount you have to pay each year toward the cost of your health care bills before your health insurance coverage kicks in fully and begins to pay (if you're enrolled in Medicare, the Part A deductible is based on benefit periods rather than the calendar year).
How a Deductible Works— Examples
Let’s say your health insurance requires a $1000 annual deductible, and all non-preventive services are counted towards the deductible.
- In January, you get bronchitis.
- In April, you find a lump in your breast. The lump turns out to be benign; you’re healthy.
- In September, you break your arm.
- Next January, you’ll start the process all over again (some plans don't follow the calendar year; in that case, your deductible would reset at the end of your plan year).
In most health plans, once you’ve paid the deductible for the year, you’re done with deductible payments until next year. Each year, the health plan sets a new deductible. Sometimes it’s the same amount as the year before; sometimes it goes up.
If you have any questions about your bills or summary of benefits, give us a call we would love to help you. Also, if you are looking for health insurance, we can help you find the best plan at the best rate for you and your family. It’s YOUR family, YOUR budget and YOUR insurance call us a free quote today!
Cosmo Insurance Agency is an independent insurance agency serving surrounding communities in New Jersey. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating the latest in technology-based tools and laws on healthcare, employee benefits, life insurance and finance, we keep our clients up-to-date with the plans that encompass all of their needs, whether it is individual or group insurance.
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