Saturday, April 23, 2011

When a health insurance says the deductible is 2,000, what exactly does that mean?

I just turned 18 and dont really understand this insurance thing. . I just want to be able to go to the doctor without paying an arm and a leg. When they talk about this deductible, does that mean like if I go to the hospital, I pay the first two thousand and they pay the rest? What does this mean for regular doctor bills? Am i going to have to pay for everything unless its more than two thousand? Please help me to understand this. Thank you so much in advance.
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As noted, a deductible is what you pay before the insurance pays for anything. However, the deductible might be for all charges or it might only apply to a hospital admission. Doctors visits might be covered for a modest copay on your part or they might not be covered until you have paid your deductible. Based on what you are asking you need a trusted adviser to help you through the process of purchasing health insurance so that you understand what you are purchasing. Understanding what you are buying is as important as the price. An agent can give you the knowledge you need so that you can decide what the right balance is between affordability and policy benefits. If you choose a plan that covers everything i.e. doctors office visits, prescription drugs, preventative health benefits, maternity coverage as well as low deductibles, low co-pays and optional vision and dental benefits your monthly premiums will be significant. On the other hand because you are young, presumably healthy and probably don't often use the health care system you might consider a plan that covers only the major health catastrophe. In this type of plan the insurance company does not pay benefits until you first reach a significant out of pocket cost (this is a deductible). Ask the agent if an HSA might be right for you. If you'd rather have more comprehensive individual health insurance coverage, such as preventive care coverage, consider a PPO or HMO plan with a lower deductible. Consider higher co-pays for doctor's office visits and perhaps not cover prescription drugs. Either of these approaches will result in a lower monthly premium. You then can use the monthly premium savings to pay for the occasional doctor visit or prescription and still come out ahead. Check with the agent that writes your home or auto insurance he/she can provide you a health insurance proposal that takes into account your budget and health status. They can answer questions as to what is and is not covered by the policy, explain deductibles and co-pays and show you the hospitals and doctors that participate in the network. (Networks in PPO and HMO plans are very important considerations). Some are going to suggest you go to their web site so that they earn a few pennies on a "click through". Some may suggest going on line to get a quote but you probably know there is much more to choosing the right health insurance than price. Use the Internet to educate yourself but use an agent to purchase the coverage.
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