What You Need to Know About Health Insurance Deductibles in 2020

What You Need to Know About Health Insurance Deductibles in 2020 - World Executives Digest
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World Executives Digest| What You Need to Know About Health Insurance Deductibles in 2020 | “How can I get healthcare?”, “How much does it cost?”, “What are all the aspects of healthcare that I need to be aware of?” and more.

There are several aspects of healthcare that warrant discussion. Answering every question that’s out there though extends beyond the scope of this post.

What our team will be focusing on to help you better understand healthcare policies is something called a health insurance deductible.

Deductibles are an aspect of insurance that exist across almost every type of health and other insurance policy you can invest in. By appreciating their ins and outs, your healthcare fluency will increase as will your ability to purchase better plans.

Healthcare Deductibles Defined

To start our healthcare deductible discussion, let’s put a definition to the term. Deductibles are an amount of money that insurance companies will have you pay before your coverage activates.

For example, let’s say you had an insurance deductible of $2000 and you had a medical expense of $3000 that needed to be paid. You’d need to pay $2000 worth of your expenses before your insurer comes in and covers the rest. Deductibles reset during each new policy period.

Deductible Limits

With the passing of the Affordable Care Act, deductible limits were placed on insurers. That put an end to insurers asking their customers to pay exorbitant up front costs.

As of the time of writing, deductibles are capped in the United States at $6900 for an individual per year. Remember, once you cross over your deductible limit, your insurer will need to cover all of your medical expenses. The only thing you’ll still be liable for will be your co-pays, if applicable.

Family Deductibles

If you have more than one person on your insurance plan, your health insurance deductible will look different. While deductibles are capped in the United States at $6900 for an individual, family deductibles are capped at $13,800.

This affords insurers more financial leeway when managing plans where multiple people can make claims.

The $13,800 family figure is not a per-person deductible. It encompasses every family member. Once the $13,800 limit is met, all members on your family plan will receive free healthcare coverage outside of co-pay obligations.

How Networks Affect Deductibles

Some insurance providers will have two separate deductible numbers attached to your healthcare plan. One of those numbers will cover in-network care while the other number will cover out-of-network care.

In-network care is care you receive from physicians your insurer has approved. These doctors generally provide better prices to insurers which makes it so providers prefer that you use those doctors.

Out-of-network care is care that you receive from doctors that don’t have deals with your insurer. Insurers pay more for this care. Consequently, they make your deductible and other aspects of your insurance less advantageous.

Comparing Deductibles

It’s important to know that not all deductibles are the same. Some insurance plans will have nothing in the way of deductibles. That means the moment you make a claim, your insurance will have to start paying. Other insurers have deductibles that are set at the $6900/$13,800 limits.

When you shop for healthcare through marketplaces like the one featured on healthcare.gov, you can sort plans by their deductible expenses. This will enable you to discover which of the best health insurance companies are offering the best deductible rates.

Understanding Other Insurance Expenses

While we wish we could tell you that getting a good deal on insurance was as easy as buying the plan with the lowest deductible, that’s far from the truth. Deductibles are just one aspect of an insurance plan’s cost that varies based on other aspects of your coverage.

For example, your plan might have no deductible but could have ultra-high insurance premiums (what you pay for coverage per month). A plan with a low deductible might also have extremely high co-pays.

In general, plans with low deductibles are best suited for people that plan on using their healthcare a lot. Plans with high deductibles but lower ancillary expenses are best suited for healthy individuals that rarely need medical attention.

Saving on Deductibles and Healthcare

If all of this talk about healthcare and deductible expenses has you down, know that there are ways to save money on coverage.

Low-income individuals likely qualify for state and federally sponsored medical care. This care may allow qualified people to get converge free of deducible, co-pay and premium charges.

If you don’t qualify for free insurance, your income could still make getting reduced healthcare costs possible. This assistance is executed through access to premium tax credits you can cash in every April.

People that don’t want to wait until April for assistance can opt to take their tax credits upfront. Just know that when you file your taxes, if the government realizes you made too much money to qualify for insurance help, they’ll ask you to pay any upfront money they gave you back.

You Now Understand More About Your Health Insurance Deductible

Understanding your health insurance deductible helps you understand several aspects of your insurance. We hope that the insight we’ve shared with you enables you to more confidently shop for coverage and save money where appropriate.

If you find that you need more guidance on insurance and health, we’ve got you covered. Our team uploads new lifestyle content on our blog every week that we welcome you to read more of now!

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