Is a Deductible Paid Before or After the Health Insurance Company Pays?

An insurance deductible is a specific amount of money that you will be required to pay for medical expenses. The deductible is specified when searching for health insurance plans and is agreed upon by the buyer at time of purchase. It is an amount that needs to be paid before benefits from a health insurance policy can be active.

Deductible Payment

• You may be wondering when you need to pay the deductible. Normally, if you have a medical problem and go to an emergency room, you will need to pay the health insurance deductible first before the insurance company will pay on the claim. However, some insurance companies make the exception that you will not need to pay the deductible first for routine office visits. However, this is dependent on the type of plan that you choose. Unless your plan details say otherwise, you can normally expect to have to pay the deductible before your insurance company pays on your claims.

Choosing Deductibiles

• Deductibles are listed when health-insurance policies are quoted and can have a wide range in cost depending on the type of coverage you choose. Going with a lower deductible normally means that you will be paying more out of pocket per month, while paying a higher deductible is associated with a lower monthly payment.

Deductible Amount

• The cost of a deductible varies and can range from $0 to $10,000. Remember that even if you have zero deductible, you are still may be obligated to pay co-pays or co-insurance.

Consideration

• It can often be difficult for families and individuals to make a payment for a high deductible, especially when the monthly payments are added in. Having extensive health insurance coverage can help tremendously if you have health problems or even during an unexpected health crisis, but paying for unnecessary coverage can be difficult to handle.

Frequency

• The deductible is required for payment each year before services can be paid by the insurance company. This amount normally re-sets each year when the policy starts or after you have enrolled in a new policy.

Tip

• Many medical expenses can be written off when filing your taxes. The health insurance deductible may also be included in the deduction, depending on the amount of your income and total amount of medical expenses.