Health Insurance
What is a health insurance deductible and how does it work?
A health insurance deductible is the amount you pay out-of-pocket for covered healthcare services before your insurance starts paying. For example, with a $3,000 deductible, you pay the first $3,000 of covered costs each year. After meeting your deductible, you typically pay coinsurance (a percentage of costs) until you reach your out-of-pocket maximum. Preventive care (annual physicals, screenings, vaccines) is usually covered at 100% before the deductible. In-network vs out-of-network deductibles are often different — always check.
Key Points
- Deductible: the amount you pay before insurance starts paying
- After meeting deductible: pay coinsurance until you reach out-of-pocket maximum
- Preventive care is usually covered at 100% before the deductible
- Family deductible: can be met by one person or the whole family combined
- In-network and out-of-network deductibles are often different
- Higher deductible = lower premium; lower deductible = higher premium