shalesh kumar A health insurance deductible is the amount of money you must pay out of your own pocket for covered healthcare services before your health insurance plan starts paying its share. Until you meet your deductible, you’re generally responsible for most eligible medical expenses, although certain preventive services may be covered without requiring you to meet it first.
For example, if your health insurance plan has a $2,000 deductible, you’ll typically pay the first $2,000 in covered medical expenses yourself. After you’ve met that deductible, your insurance company begins sharing the cost of covered services according to your plan’s terms, which may include coinsurance or copayments until you reach your out-of-pocket maximum.
Key Points
- A deductible is not your monthly insurance premium.
- It usually resets at the beginning of each policy year.
- Higher deductibles often come with lower monthly premiums, while lower deductibles typically mean higher premiums.
- Not every healthcare service is subject to the deductible, as many plans cover preventive care before the deductible is met.
Understanding your health insurance deductible helps you estimate your healthcare costs, compare insurance plans, and avoid unexpected medical expenses.
