Staying healthy is among the most important things in life. There are several great ways a person can stay healthy, but one of the most important is to have a good health insurance plan. Health insurance can help you to handle the high costs of healthcare, and stop an accident or emergency from completely bankrupting you. Those with health insurance are more likely to visit the doctor for preventative care, as well.
However, even with insurance, you are still responsible for paying some healthcare-related costs. Not only do you have your premiums that you pay every month, but you are also responsible for something called a deductible. These are very important considerations when deciding which health insurance plan is right for you and your family.
With that in mind, let’s go over healthcare deductibles, look at what they are, and go over and why they are important for your family to consider.
What is a Deductible and How Do They Work?
A deductible is an out-of-pocket expense that you will be responsible for paying before your healthcare plan covers costs. So whenever you use healthcare services that cost money, you must pay your deductible amount and once that amount is taken care of, the insurance will handle the rest.
Your deductible is also the same no matter what services you require. If your deductible is $500, and you have an accident that costs $1,200, you will only have to cover $500, while your insurance will pay the rest.
On the other hand, if you require medical assistance that costs $400, that would be completely up to you to pay for, as it is under your deductible amount. However, it is important to know that every year the deductible starts over. So if you paid your deductible in 2020, don’t expect that to make all of your healthcare in 2021 free.
If you want to learn more about deductibles and go into greater detail about what they are, check here for more great information.
How Much Do People Pay?
When it comes to the amounts that people pay for their deductible, it can vary greatly. This often depends on the type of health insurance plan that you have. The plan one person has might have a deductible that is twice as large as another. However, that doesn’t inherently mean that they have a bad health insurance plan.
When it comes to health insurance, the two main costs most people associate with them are the deductible, and the monthly premium. In the USA, healthcare plans use metal levels to differentiate the different tiers of plans. These include Bronze, Silver, Gold and Platinum.
The higher the metal level, the lower the deductible. But on the other hand, these top-level plans also come with higher monthly premiums. So the amount of your deductible, will depend on the plan that you decide to go with. If you opt for a Bronze plan, you will have sky-high deductibles, but will only be responsible for
On the other hand, a Platinum plan will feature an incredibly low deductible, but will have premiums that can be quite costly. Platinum plans will certainly be better for those who use a lot of healthcare services, or want to be protected if something major occurs. Lower level plans are often chosen by those who are young and healthy, as they are less expensive if you don’t generally use healthcare often.
Other Out-of-Pocket Healthcare Expenses
While a deductible is probably the largest and most pronounced out-of-pocket expense, it isn’t the only one. Being aware of all out-of-pocket expenses is very important to ensure you can fully understand how much you are responsible for paying for healthcare.
Two of the most common out-of-pocket expenses you will be responsible for are coinsurance and copay. Coinsurance is a way for you to split or share your health insurance costs with your insurance provider. A copay is when you are responsible for a flat fee in regards to certain services once your deductible has been paid for.
Just like a deductible, these costs and their amounts should be considered when deciding which type of healthcare plan to get for your family. It is important to be aware that each of these begins once your annual deductible has been paid for.
Deductibles are an Important Consideration For Your Family
When looking for the right healthcare for your family, the deductible you will be responsible for is important to consider. You need to consult your budget and find out what you are comfortable paying. The last thing you want is to sign up for a plan with deductibles or premiums that are too expensive.
But which type of plan is better, one with high premiums and a low deductible or one with a high deductible and low premiums? Well, that all depends on the unique needs your family has. If you use healthcare services a lot, and your family visits the doctor often, a higher tier plan often will be more valuable.
On the other hand, if you seldom use healthcare-related services, and don’t see that changing, lower-tiered plans will be more affordable with their low premiums.
However, if you can afford slightly higher premiums, it is a good idea to go with a slightly better plan so you are responsible for paying less if someone gets injured or goes through an emergency. It can give you peace of mind knowing that you are protected from paying thousands and thousands in medical costs if something terrible takes place.
In conclusion, we hope this article has been able to show you the importance of a healthcare deductible and why taking the time to choose the right plan is very important. Going for a plan with a low premium and high deductible can be tempting, but it is important to look at the total costs in the case of an emergency and see which option you are better off going with.