Health insurance deductibles can help lower premiums

Posted by daviddon on February 4th, 2015

It is essential to perceive health insurance deductible as it can aid to decrease your health insurance premium. Health insurance deductibles are what you pay out of your own pocket before the insurance agency pays under the health insurance policy. This means you must have accessible funds to pay first before insurance kicks in. A deductible is what you want to pay before the insurance agency will begin to pay its portion of the costs for a covered health outlay. The deductible could range anywhere from some hundred dollars or as high as many thousand dollars.

Generally, if you’re very healthy, then you do not need to see a doctor frequently or be on much medication, then you can go for big deductibles which will keep your premium less. If on the other hand, one has a serious health problem, then it is better to go for big premiums and lower deductibles so that your insurance kicks in sooner.

The insurance agency takes the health insurance deductible into consideration when finding the premium for the coverage. The bigger the premium, less the deductible. Most agencies have distinct health insurance deductibles for distinct types of health insurance coverage. For instance, deductibles for a hospital visit might be $1,000 but for prescription medicine, it may be $250.

Here is an instance of how deductibles work. If you had a medical bill of $450 and your deductible is $500, then you pay the full amount yourself, since it is less than the deductible. Only after you’ve paid the deductible amount will the health plan start to cover your medical expenses.