When it comes to choosing a health insurance plan, it can become overwhelming, especially if you are unaware of all the terms and details that are associated with each different type of plan. Not only do you want to look at the monthly cost of a plan, but you also want to know during which situations you will be paying out of pocket and how much you will be paying out of pocket. One area to pay close attention to is the health insurance deductible of any plan that you are considering. This is because this determines how much you will be paying out of pocket in many situations. Here are three things to know about deductibles:
Health Insurance Deductibles Work Differently Than Home and Auto Insurance Deductibles:
When it comes to paying a deductible with your home or auto insurance, you probably already know that you have to pay the full amount of the deductible before the insurance will cover any costs for you. This works very differently with a health insurance plan. This is because most health insurance plans will allow you to receive the health care that you need before you pay the deductible. The deductible amount can be worked out much like a payment plan so that you can receive the care you need without having to worry about paying up front.
Preventative Care Doesn't Have a Deductible:
Any preventative care that you receive is covered and will not require you to meet the deductible amount beforehand. This includes health services, such as screenings, exams, immunizations, and more. Health insurance deductibles are mostly for health care that you need as the result of an injury, disease or other ailment. For example, you typically have to meet the deductible amount in order to be covered for surgery, rehabilitation, and more.
High Deductibles Have Tax Benefits:
When it comes to choosing a deductible amount, it may be obvious to you to choose the lowest amount possible. However, there is a benefit to receiving a high deductible amount. This is because, in most cases, you will receive a health savings account, which is an account in which you can set money aside for health costs. This money is not taxable. The downside is that you will be paying more monthly for your health insurance, so that is something to consider, as well. You want to choose a deductible amount that you are comfortable with all around.
By knowing these things about health insurance deductibles, you can be sure that you better understand what your out of pocket expenses are going to look like.
To learn more, contact a company like Culbertson Financial Services.