How to Explain How One Accumulates a Health Insurance Family Deductible

Understanding health insurance terms can be a daunting endeavor. By the time you are clear on your premium payments, co-pays, preexisting conditions and participating provider lists, you may need to take a rest before you review how the annual deductibles are accumulated. An annual deductible is the amount of money that you must spend in one calendar year before your health insurance policy takes effect and starts paying for medical expenses. They are a fixed cost that can range anywhere from $500 to $10,000, as of 2010. There is an individual deductible amount and one for the entire family.

Things You'll Need

• Individual deductible amount for your policy
• Family deductible amount
• Medical care that qualifies toward the deductible

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Instructions

• 1

  Look at your policy to find the amount of your annual individual and family deductibles. This will vary from plan to plan. These amounts will be what you pay out-of-pocket.

• 2

  Understand what health care expenses you will pay full price for that count toward the accumulation of your deductible. Each time you have care that qualifies toward the deductible during the calendar year, you are closer to having your benefits pay for your medical costs up to your insurance maximum, or policy limits. Also, you still will be responsible for any co-pays and coinsurance amounts as dictated by your plan until you meet the out-of-pocket maximum.

• 3

  Do not count certain expenses, such as doctor visits and some prescriptions, toward your deductible. These normally will require co-payments, which do not count in the accumulation of the deductible.

• 4

  Know the number of family members that will be counted toward the annual family deductible. Once the family meets its deductible limit, no other deductibles will be charged. Generally, you will not have to pay one deductible per family member, but will be allowed to accumulate only two to three before your family deductible is met. After this time, you will be responsible only for the co-pays and coinsurance amounts as specified in your policy, which may be a percentage of your medical bills or a portion of doctor visits.

• 5

  Keep track of your annual out-of-pocket expenses to ensure that the insurance company has counted all payments spent that meet your deductible.