A deductible expense is an amount of money you’re responsible for paying out of pocket that is used for certain expenditures with your insurance company. These expenses are referred to as “deductibles” because they’re deductable from your insurance coverage. The deductible is the amount you’re responsible for paying towards medical costs, for example.
The amount of your health insurance deductible usually is based on your income and the type of insurance you have. You might have a higher deductible if you’re in a low-income situation or if you have a high-cost policy. Your deductible is the amount you have to pay out of pocket before your insurance coverage becomes active.
When you meet your deductible, you no longer have to pay the remainder of the cost of your medical treatment. Instead, you pay a small amount (typically a co-payment), and your insurance company covers the rest. When you reach the end of your coverage, you pay the amount you still owe as a deductible. At that point, your insurance coverage is not active anymore.
Is It Worth It To Have a Deductible?
If you need health insurance, then yes, it’s worth having a deductible. Having a deductible makes you a safer and more affordable choice for health insurance. The reason is that insurance companies usually provide better rates to individuals with healthy household budgets.
With a higher deductible, your insurance company will assume you’re a lower-risk individual and offer you a better rate. If you don’t mind paying a little more for health insurance, then having a deductible is worth it.
Even if you have health insurance, you should know that deductibles can still exist. If you don’t meet your deductible, then you have to pay the entire cost of your medical treatment. This can be a significant amount, especially if you need medical treatment that’s not covered by your insurance plan.
When Do You No Longer Have to Pay Your Deductible?
The general rule is that you no longer have to pay your deductible if you meet the following conditions:
- You stay in complete remission from your medical condition.
- You don’t need medical treatment anymore
- You don’t have any more medical conditions that require expensive treatments
- You don’t put yourself in any more dangerous circumstances (driving while intoxicated, etc.)
- You don’t let your insurance coverage lapse
- You don’t break any of the rules of your insurance plan
If you meet these conditions, you no longer have to pay your deductible. When this situation arises, your insurance company will tell you that you no longer have to pay your deductible. If you do, however, fall into any of the conditions listed above, you have to pay your deductible whether you want to or not.
What Is a Co-Payment?
If you meet your deductible and your insurance company covers the rest of your medical treatment, you don’t have to pay a co-payment. In most cases, you will be asked to pay a co-payment at the time you meet your deductible.
Some insurance companies will require you to pay a higher co-payment if you have a higher deductible. Your co-payment is how much you’re responsible for paying towards your medical costs. Many people confuse a deductible with a co-payment, but they’re not exactly the same thing. A deductible is the minimum amount you have to pay towards your medical costs; a co-payment is what you have to pay once you meet your deductible.
Your co-payment will vary based on your income and the type of insurance you have. Some insurance companies will waive your co-payment if you have a higher deductible. However, if you have low income or are still covered by Medicaid, then you might have to pay a higher co-payment.
The purpose of having a deductible and a co-payment is to protect you against catastrophic medical events. Having a high deductible means you’re assuming more risk; if you do get sick or injured, then you’ll be responsible for paying the entire cost of your treatment. A co-payment is how much you have to pay towards your medical costs, but if you don’t have enough money, then you’ll have to wait until you meet your deductible to receive free care.
If you meet your deductible and your insurance covers the rest of your medical treatment, you don’t have to pay a co-payment. When this situation arises, your insurance company will tell you that you no longer have to pay a co-payment. If you do, however, fall into any of the conditions listed above, you have to pay your deductible whether you want to or not.
How Do I Know If I’m Eligible For Financial Assistance?
If you meet all of the requirements listed above, you’re eligible for a number of different types of financial assistance. Medicaid, for example, is a government-sponsored insurance program that provides coverage to individuals with low incomes. You might be able to get financial help from your employer’s insurance plan, as well. Your bank might even have a special line of credit or a dedicated financial assistance officer who can help you get the money you need.
If you don’t have any of the conditions listed above, then you might not be eligible for the above assistance. In that case, you’ll have to look elsewhere for help. You could contact your local chapter of the American Red Cross for financial assistance if you’re in an area that’s been affected by the COVID-19 pandemic. They might have a small grant program that could help you pay for your medical treatment. You could also try contacting your State’s health insurance department for assistance or a governmental agency that provides food stamps. Many insurance companies offer special assistance to low-income families and individuals with special needs. If you’re eligible, then these programs could help you get the care you need without worrying about paying for it.
Even if you have health insurance, you should know that deductibles can still exist. If you don’t meet your deductible, then you have to pay the entire cost of your medical treatment. This can be a significant amount, especially if you need medical treatment that’s not covered by your insurance plan.