What is the deductible on insurance?

Question

i just got insurance for 110 for my employer for health dental and life benefits and there says a 500 deductible has to be received before benefits is released? what does this mean... Can anyone explain how this works out,

do I have to pay 110 a month untill I pay 500 to schedule a appt to see a doctor?

so if the doctor visit is 250,since its less than 500 I have to pay it, why would someone have insurance then? How long do I have to pay my 250 visit to qualify for benefits? Untill I get a 501 dr, visit? I DONT UNDERSTAND

WOW! I might as well get public health insurance with medicaid... thats free...lol Just have to pay 30 co pay and 5 for RX...lol

Answer 1

You pay $110 each month for your insurance. For the $500 deductible, it means the insurance doesn't kick in until AFTER the first $500 in bills have been submitted.

If your doctor visit was $250, then that's half your deductible. You need to submit it, because it shows the insurance company you're halfway to the deductible.

In case you didn't notice, it's not very hard to get $500 in medical bills. This is a YEARLY deductible, I'm assuming, so after a couple doctor bills (with tests, bloodwork, whatever) you'll likely be over your deductible - even if there's 'nothing wrong'.

One trip to the emergency room, and you'll be glad you had it. Heaven forbid you break your leg walking to your car - the health insurance is what covers it.

Answer 2

You pay the $110 a month as long as you have the insurance.

With a deductible, what it means is that you have to pay $500 in charges until the insurance kicks in some cash. NEVER pay the provider of service up front - you ALWAYS want your insurance billed first. Two reasons why: 1. That's how your deductible is tracked. 2. You usually pay a LOT less than the billed amount, as long as you use a participating provider and the service is a covered benefit. Meaning: if you don't have coverage for preventative care, you'll probably have to pay the whole boat on it. Participating providers take a discount for accepting the insurance, they know this and they deal with it.

Answer 3

A deductable is a dollar amount that you are responsible for when an insurance claim is filed, before your insurance benefit kicks in. For example, in your case when you see a doctor you are responsible for the first $500 of your bills before your insurance company will pay for anything. You need to check to see if your deductable is per person per year (the usual case). It would take several doctor's visits to hit this $500 mark. However if your deductable applies to each claim (like with auto insurance) your benefit will only kick in for procedures or visits that cost more than $500.

Answer 4

It means you (the patient) have to pay then entire deductible amount ($500.00), before your insurance will pay anything, each year.