Health Insurance Deductibles: How Big Should Yours Be?
A deductible is the amount of money you must pay before your insurance benefits begin to pay. Typically, the deductible is an annual amount. Therefore, each year when your health insurance policy renews, so does the deductible. Deductibles can be assigned per person and there can be a total deductible amount for the family. Amounts can range to more than $25,000 annually.
Not all the medical services that you pay for will apply toward your annual deductible. Services that normally do count toward the deductible amount are surgery, emergency room visits, and inpatient and outpatient services.
You should consider just how much you could reasonably pay out of pocket
if you had a medical claim. You also must consider any other expenses you must pay even after your deductible is satisfied.
In most cases, policies with lower deductibles tend to have higher premiums. Therefore, compare the price for low- and high-deductible plans with the out-of-pocket expenses you would incur should you need to file a claim. Adding the premium amount and the deductible amount will determine your overall expenses per year. You should choose a policy deductible that’s right for your situation and budget.