Don’t Ever Burden Yourself With Health Care Costs Again
You can save a lot of money on health care costs if you know how your healthcare services or health care insurance deductible work.
Health care deductibles can be more complicated than home insurance or car insurance deductibles. This is one of the reasons why people are less familiar with it, even though health care deductibles work similarly. You can make the most out of your health insurance if you become more familiar with the different kinds of deductibles.
DEFINITION OF INSURANCE DEDUCTIBLE
The health insurance deductible is the amount you pay before an insurance provider begins to pay for any expenses. Other terms use as health insurance deductibles are medical deductible and health plan deductible.
HEALTH INSURANCE DEDUCTIBLES ARE CATEGORIZED IN THREE TYPES
Health insurance policies have three different kinds of deductibles. A brief explanation for each one is provided so that you can better understand how these deductibles will affect you on different coverages:
DIFFERENCE BETWEEN COMPREHENSIVE DEDUCTIBE AND NON-COMPREHENSIVE DEDUCTIBLE
A comprehensive deductible is a deductible amount that applies to and includes all the coverages in your insurance plan. It adds up, and once you’ve met your comprehensive deductible, your health insurance plan will pay for medical expenses. This is the easiest type of deductible to understand, and you don’t have to guess how different deductibles apply to different coverages in your plan.
A non-comprehensive deductible means that not all of the coverages in your health insurance policy will have a deductible applied to them. A deductible only applies to specified coverages.
This is a prevalent condition in many policies. This type of deductible can have many advantages for you, as your plan can provide for some medical expenses without consuming your own deductibles.
If you have a family health insurance plan, you might be interested in what is called cumulative deductibles.
In insurance plans, family members might have individual deductibles, or the plan could have just one family deductible. A family deductible does not require each member to meet the deductible individually. With a family deductible, all members of the family can pay cumulatively towards a deductible. Once this cumulative amount paid by everyone reaches the deductible, any member of the family who is part of the plan can enjoy the insurance benefits.
Cumulative deductibles in family health insurance plans can help you save money because of the contribution that every plan member has to pay to meet the deductible counts.
DYNAMICS OF HEALTH INSURANCE DEDUCTIBLES
Understanding how different kinds of deductibles work are important because you will know that not all the coverages in your health insurance plan are the same.
Every health insurance plan differs from each other. Some coverages have lower deductibles compared to your overall insurance plan. Some policies even cover medical expenses and procedures with no deductible.
Remember to ask questions to your insurance provider that will help you better understand your health plan coverage and deductibles. These questions will help you have a better idea of the amount of money you need for out-of-pocket costs.
OUT-OF-POCKET COSTS EVEN WHEN THERE’S NO DEDUCTIBLE
There are insurance plans that offer coverage for medical costs “without a deductible.” Read your health insurance plan carefully and check for the limits. Limits are not the same as deductibles, but you will also have to pay out of your pocket when you hit the limit in your health insurance plan.
Here is an example of this scenario: your plan may include the “no deductible” to eye exams. But your plan may have a limit to the exam cost or even the cost of the glasses that you will need to buy.
If the limit for the eye exam coverage in your health insurance plan is $50, and your eye exam costs $65, you will have to pay the difference of $15. In this example, you still had out-of-pocket expenses even though there was no deductible.
WHEN TO USE HEALTH INSURANCE DEDUCTIBLE
Some people have the impression that they only have one option for health insurance plan. However, a better understanding of health insurance deductibles helps you realize that you can always ask for quotes with different deductibles. When you purchase your health insurance plan, you can choose the deductibles that apply to the coverages.
Over time, the money that you save on the costs can easily add up to the amount that you need to meet the deductible. Learn to put aside those savings. This way, you are in control of your money. If a medical emergency never comes up, you will come out on top with the right amount of savings. All this depends on the type of medical services that you need and anticipate.
CHOOSING A HIGHER DEDUCTIBLE ON HEALTH INSURANCE
A high-deductible health plan means that you’ll need to pay more out of your pocket before your insurance pays for your medical expenses. But, taking a higher deductible saves money in the long run as you get lower monthly premiums. You need to remember, though, that it will never be about the cost, but what it will cost you when you need to use the insurance. You might be putting yourself at risk if you cannot afford to pay the higher deductible in your medical plan in case of an emergency.
Here’s a helpful tip that you can use when deciding to get a high-deductible health plan: If there is an emergency and you have to come up with the deductible tomorrow, will you be able to do so? If your answer is no, look for another plan that will work better with your budget.
SAVING MONEY FOR HIGHER DEDUCTIBLES ON HEALTH INSURANCE
If you cannot afford a higher deductible today, you can choose to save some money specifically for health insurance. Put aside money every month into an emergency fund.
Keep saving money into this emergency fund, and in a year or two, you just might have saved enough to take a higher deductible. With this option, you’ll pay less money in the long term for your health insurance.
CONSIDER A HEALTH SAVINGS ACCOUNT
A health savings account is another option that you can learn more about health insurance that will help you with your medical costs. There are many benefits to having a health savings account, which is why more and more people use them to save and pay for medical expenses.
Saving money is difficult enough, but it gets even worse when an emergency strikes and puts your health at risk. A health savings account works like an emergency fund just for medical costs. So if an emergency does not happen, you will have savings for the future.
Based on Materials from The Balance
Photo Sources: Center Malta, The Balance, Pixabay, Kiplinger