Health Insurance Deductibles- How Do They Work?
One of the most common questions our Advisors here at MyInsuranceExpert.com have is “what is a deductible?” Clients will even explain that they don’t see the point in buying insurance if they have to meet a $2,500 or a $5,000 deductible before their insurance will pay anything. That belief is one of the biggest misconceptions people have about health insurance, and a lot of time actually prevents them from getting the coverage they need.
A health insurance deductible primarily comes into play for major catastrophic medical bills (surgery) or if you find yourself in the hospital. I want to emphasize that this deductible does not have to be met before you can have a doctor visit copayment, and even have your preventive services taken care of.
Although a health insurance deductible is used as a safety net for major medical bills, there are some things that may be subject to it. Here are a couple items that may go towards meeting your deductible:
- Lab and X-ray work that is sent out of the doctor’s office
- Diagnostic services like a MRI or CT Scan
- Complications of pregnancy if you do not have maternity coverage
To conclude I want to touch upon the mistaken belief that insurance is pointless if you have a $2,500-$10,000 out of pocket exposure. People often think “well how am I going to afford that?” or “why would I pay “x” amount a month if I’m going to have to pay that?” The most important reason to have insurance is to protect you from major illnesses like cancer or surgeries that can run up to hundreds of thousands of dollars. Although your out of pocket exposure may seem high to you, it really is all relative heaven forbid you do develop some sort of ailment.
