Health Insurance Deductible

A health insurance deductible is the amount of Money that a policyholder must pay out-of-pocket for healthcare services before their health insurance begins to cover costs. Deductibles can vary widely depending on the insurance plan and may apply to various types of services, including hospital stays, surgeries, and certain outpatient procedures.

For instance, if a health insurance plan has a deductible of $1,000, the policyholder must pay the first $1,000 of their medical expenses. Once this amount is met, the insurance will start to pay for covered services according to the terms of the policy, such as co-payments or co-insurance.

Consider the following cases:

• If a person has a $1,000 deductible and incurs $1,500 in medical expenses, they will pay the first $1,000, and the insurance will cover the remaining $500 (subject to any co-pays or co-insurance).
• If another person has a $500 deductible and incurs $300 in medical expenses, they will pay the entire $300 since it does not exceed their deductible.