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The 5 Basics of Health Insurance: Deductible


Deductible is the first part of your insurance that you pay out of your own pocket before health insurance kicks in. The higher the deductible, or the more you pay up front, means the premium or the amount you pay per month will be lower. A good example of how a deductible works would be if you end up in the hospital with a huge bill of $100,000 and your  deductible is $5000, that means that your insurance will start paying for the $100,000 claim, after you pay the $5000 deductible.

If you have more than two people on your policy, the deductible will work a little different. Within a health insurance policy, there are both individual deductibles and family deductibles. The family deductible is met, or reached, by adding up the claims made by the individuals on the policy. When there are more than two people on the policy and two individuals have met their individual deductibles then the whole family has met the family deductible. Which means if the family deductible has been met, and another family member makes a claim, the 3rd person (or anyone after) does not have to meet the deductible because it was met by the first 2 members. For example, let’s say that a family of 5 went to a family reunion, and they all ate a really bad egg salad. Then they all ended up in the hospital. Once the mom and dad hit their individual deductibles, the kids wouldn’t have to meet a deductible and their family health insurance coverage would kick in and cover the claims for the whole family. 

If you have any other questions or would like to schedule an appointment, click the link below to Talk to Tim.

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