Common Questions about Health Insurance Deductibles

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When choosing a health insurance plan for your family, you may find the word “deductible” appearing with different options for each plan. It can get confusing if you are not familiar with the term. Choosing a plan with a high deductible is much different from a plan with a low deductible. Let’s find out why.

Jonathan Nolan
JPN Insurance

What Is a Deductible?

A health insurance deductible is the out-of-pocket amount you have to pay before the insurance starts covering costs. Once you have paid your deductible, then insurance will begin to cover the expenses incurred when you visit the doctor. Each plan is different when it comes to the amount of deductible required.

Is It Better To Choose a High or Low Deductible?

While it may be tempting to go with the low deductible, thinking that you’ll pay your deductible early and all the rest will be covered by insurance, it’s not always the best option. For example, low deductible plans have a higher insurance premium payment each month. So the money you think you’re saving by meeting your deductible early can be spent in your monthly premium payments. It would be best if you consider how much you and your family will use the insurance to make it worth it.

If you do not have medical issues, have a low risk for accidents, and do not anticipate any upcoming surgeries, it may be better to sign up with a high deductible plan. Then your monthly premium costs will be lower, and you may rarely find the need for insurance. In this case, insurance is there in case of emergencies and unexpected medical conditions.

In Conclusion

Health insurance deductibles are the cost that the insured is expected to pay before the insurance takes over the medical expenses. You can find a variety of plans with varying deductible options. It is best to meet with a licensed insurance broker who can explain your options, present multiple plans, and help you to discover the best coverage for you and your family.

For questions about health insurance, including Medicare or Covered California, call Jonathan Nolan at JPN Insurance Services. You can schedule an appointment today: (951) 443-9925