A deductible is an amount of money that you must pay out of pocket before the benefits of the health plan kick in. Example: if a plan has a $2000 deductible, you pay the 1st $2000, then the plan starts. Having said that, there are many benefits in which the deductible does not apply. The plan will state something like "deductible waived" for those benefits. Obviously, the lower the deductible, the higher the premium.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
A health insurance deductible is the amount you must pay before your benefits "kick in" and begin paying (for most services - some benefits, such as preventive care, provide coverage immediately). The deductible amount varies by plan.
For example, under the new Affordable Care Act, a catastrophic plan may feature a $6,350 deductible, a bronze plan may feature a $5,000 deductible, a silver plan may feature a $3,000 deductible, a gold plan may feature a $2,000 deductible, and a platinum plan may feature a $0 deductible. These figures are not the same for all plans on each metal level.
The higher the deductible, the lower your monthly premium and vice versa.
That is a great question! In insurance speak, the deductible is the part of the cost of treatment that you must pay before the insurance company picks up what they promise to cover. It is the same with your auto insurance, or homeowners/renters insurance deductibles. As a general rule of thumb, the lower the deductible, the higher the price, so the idea is to find a policy that will have the lowest deductible that you can afford, with the most coverage. If you can find a policy with a low cost, you may be able to get a deductible that really works for you. I recommend that when the enrollment period rolls around this fall, that you go to the Affordable Care Act ( Obamacare) site, www.healthcare.gov site, and look there. The Act allows for subsidies that help discount the price of the policy. I have had many clients that have found affordable coverage there. If you would like help, please feel free to contact me, I'm happy to help. thank you for asking!
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For example, under the new Affordable Care Act, a catastrophic plan may feature a $6,350 deductible, a bronze plan may feature a $5,000 deductible, a silver plan may feature a $3,000 deductible, a gold plan may feature a $2,000 deductible, and a platinum plan may feature a $0 deductible. These figures are not the same for all plans on each metal level.
The higher the deductible, the lower your monthly premium and vice versa.