Health Insurance Deductibles Can Help Lower Insurance Premiums
What is a health insurance deductible? It is the amount that we have to pay from our pocket before the insurance company pays anything under the health insurance policy. All insured people should have a basic idea of these insurance deductibles as it would help them to save in their health insurance premiums. The deductibles are met from our pocket, so we should have sufficient funds to meet the deductibles before the insurance kicks in.
Deductibles are the cost that you would have to incur yourself before the insurance company starts paying its portion of costs for the health expense. These deductibles are pre-decided at the time of entering contract with the insurance company and can range from anything between some hundred dollars to as high as several thousand dollars. The premium for the insurance coverage depends on the amount of deductibles you choose. Higher the deductible lower would be the insurance premium, and lower the deductible, higher would be the insurance premium. So if you feel that you don?t need much insurance coverage as you are very healthy, then you could opt a higher deductible which means that you need to spend only a small amount as the insurance premium. On the other hand, if you are suffering from various chronic diseases, more would be the medical bills that you would have to spend for doctor?s consultation and medication. In this case you can opt for lower deductible which would help you to save more expense which would have been met from your pocket.
The insurance companies would always look upon the deductible before fixing the premiums for your insurance coverage. So if you need to have an insurance coverage with lower premiums then you would have to select higher deductible for your insurance policy. Most insurance companies allow different health insurance deductibles for the different types of insurance coverage. In some cases, the deductibles for consultation charge of the doctor would be $1000 and the deductibles for medication would be $250.
Are you confused on how these insurance deductibles work? Here?s an example. If you have selected a deductible for your insurance coverage as $500 and the medical bill comes around $450, then you need to meet this medical bill out of your own pockets as they are lower than the deductibles that you have chose for the insurance coverage. The insurance company would meet only that medical cost which is more than the deductible.
Most of us would desire a cheap insurance coverage. The better way to lower the insurance premium is to choose higher deductibles for our policy. If we select high deductible then we need to pay only lower premiums for the health insurance coverage. But there is always a risk in selecting high deductible. You might feel that you are very healthy and opt for an higher deductible but if you get infected with a fever or had an accident during the policy period, then you would have to spend more money from your pocket. So it is always advisable that we combine our health insurance deductible with the health savings account which would help us to meet some of the expenses.
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