Can someone explain what a deductible is?
Sorry but I'm an idiot when it comes to stuff like this. My job offers insurance with blue cross. I was told I have a deductible of 1000$ can someone tell me what that means in simplistic terms?
- 1 year agoFavourite answer
You pay up to $1000 out of pocket for services when you receive them. Once you have spent $1000 Bluecross will pay for things 100%.
So lets say you have an x-ray and it costs $300. They may bill you $100 and Bluecross will pay the other $200. Your deductible has $900 left on it before Bluecross pays 100% of the costs.
The $1000 deductible limit resets every year so they will try to not let you pay your full deductible while trying to pay for as little themselves as they can.
Usually Out of Network doctors and prescriptions is a different deductible not included in that main $1000. You have to be careful sometimes if you end up in a hospital since you will likely see many different doctors and different departments. Some may be in Network some out of Network even though they are all at the same hospital (a pain, I know but insurance companies are evil)
- AmyLv 71 year ago
It's the annual amount that the insurance company will NOT pay for your medical care.
For example, if your medical bill is $1200, you have to pay the first $1000 and then the insurance pays the last $200.
The purpose is to prevent people from wasting the insurer's money on a lot of unnecessary tests and services just because the patient doesn't have to pay for them.
However thanks to the ACA, preventative care (such as an annual checkup) is now excluded from deductibles - every insurance plan has to pay for that even if it's your first medical expense of the year.
Plans with higher deductibles usually cost less.
- StephenWeinsteinLv 71 year ago
It what you pay before the insurance pays for anything except preventative car. It means that you pay the first $1000 of medical bills each year, yourself, in full, with no help from insurance, and then the insurance pays a percentage (usually 50-90%, sometimes all) of the medical bills after that.
- KiniLv 71 year ago
That is the amount of money you have to spend on your own medical expenses before your insurance company will pay their share of the bills, which is usually 80%. The deductible amount is what you pay every year. Some people never meet their deductible, and that to me is the real problem with insurance. If you dont meet your deductible, insurance never has to pay anything for your bills. $1000 is a good amount. You have to pay out $1000 every year first on doctor visits, treatment, surgery, before insurance covers anything. Monthly premiums not included.
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- I Like StoriesLv 71 year ago
It means you pay the first $1000 of your annual medical expenses(not including dental, that is a different deductible) before your insurance pays a dime.
Every January 1 the deductible resets.
Example, January 1 you have paid nothing towards your deductible.
January 2 you go to the doctor and are charged $250. You have to pay the $250 out of pocket, and your deductible is reduced to $750.
You get lab tests, those cost $500. Again, your deductible is not satisfied so you have to pay the $500 out of pocket, your deductible is now reduced to $250.
You go to the doctor again and you are charged another $250. Again you have to pay the $250 out of pocket, but now the deductible is reduced to $0.
You go the doctor again and are charged $250, this time the insurance pays it.
- Roger KLv 71 year ago
It means that you will be responsible for paying the first $1,000 of any medical cost before the insurance company will start to pay anything.
However, the details of what you might pay for can vary with the specifics of the plan,
To find out for certain, you need to contact the insurance company. The customer service line phone number will be on your card.
- Anonymous1 year ago
Typically, it means you pay for the first $1,000 of any covered medical costs before your insurance starts to pay a portion of future costs.
- Anonymous1 year ago
some rules say that a specific thing will relieve you of a specific portion of your tax burden
- martyLv 71 year ago
You pay when you get any medical care until you have paid $1000 then the insurance company starts to pay after that.
- 1 year ago
It means you pay the first 1k before the insurance picks up the bill. 1k is considered an arguably low deductible.