Uggh! That Health Deductible

I know, I know: deductibles can be confusing. But we're here to help.

What is a deductible?

A deductible is the amount of money you have to pay out of pocket before your insurance company covers the rest of your medical expenses. Insurance plans have different deductibles—some are higher than others and some are lower. If you have a high deductible, that means you'll pay more out of pocket for your health care costs before your insurance kicks in.

For example, if you have a $3,000 deductible, you would need to pay the first $3,000 in medical bills out-of-pocket before your insurance company would start paying its share.

What is included in a deductible?

The cost of services that are covered by your plan and your doctor's office (like office visits, checkups, and hospital stays) may not be included in your deductible. Generally speaking, these expenses will be covered by your insurance company up to 100% of the allowed amount. However, if you choose an out-of-network doctor or hospital (one not included in your plan), then you may have to pay more than 100% of the allowed amount for these services because they are considered out-of-network.?

Do I need a deductible?

Generally speaking, no. Your health plan should cover most of your medical expenses without you having to pay anything out-of-pocket—that's what insurance is for! If you do have a high-deductible plan though it's time to consider a plan with a $0 annual deductible.