Nearly all health insurance deductibles re-set annually on January 1st. One of our main goals at HFAA is to provide up to date insurance information to all of our patients. Here are some of the basics:
Purpose of Health Insurance Deductibles: Health insurance deductibles are a way to help offset the cost of health care. Health insurance deductibles require the insured (the person who is covered under a health insurance policy) to pay a certain monetary amount toward his health coverage before the insurance company has to begin paying under the policy. The insurance company considers the amount of the deductible when determining how much the premiums for the coverage will be. The higher the deductible is, the lower the premiums are likely to be.
How Health Insurance Deductibles are Used: If a health insurance policy includes deductibles, then the insured must pay a certain amount of money toward his health care before the insurance company has to pay anything under the policy. For example, if an insured has a $1,000 deductible, then he is responsible for paying his medical offices for the first full $1,000 of health costs incurred. After he pays the first $1,000, then the insurance company will begin paying toward health care costs.
Difference Between Health Insurance Deductibles and Co-pays: Health insurance deductibles are not the same as co-pays. If an insurance policy has a $50 co-pay and a $500 deductible, then the insured is responsible for paying for the first $500 of health care costs under his policy. After he has met the $500 deductible, then he is responsible for paying a $50 co-pay to his health care provider each time a claim is filed under his policy (every time he sees the doctor).
Health Insurance Deductibles for Various Types of Coverage: Some health insurance policies have different deductibles for different types of coverage. For example, a person might have to meet a $1,000 deductible before his insurance company will pay for surgeries or in office procedures. However, he might only need to meet a $500 deductible before an insurance company will pay toward office visits.
Raising Deductibles to Lower Costs: Health insurance policies with larger deductibles generally have lower premiums. This is because the insurance company is less likely to have to pay out as much money under a policy with a higher deductible because the insured is responsible for a larger amount of his health care costs. If you want to lower the amount of money you pay for health insurance coverage, consider asking for higher health insurance deductibles.
At HFAA, we strive to provide you with the current benefit information so YOU can make an informed choice about your podiatric health care. As always, if you have any other questions about your personal health coverage, please feel free to give us a call at 309-661-9975.