What is a deductible?
Deductible [ dih-duhk-tuh-buhl ]
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noun
- The amount for which the insured is liable on each loss, injury, etc., before an insurance company will make payment:
The deductible on our medical coverage has been raised from $50 to $100 per illness.
What exactly is a deductible?
Most health insurance plans have a deductible that designates the amount of money someone must pay before the insurance company (health plan) starts covering some or all of the major expenses. This usually excludes certain preventive services that may be automatically covered by your plan. Depending on your plan, deductibles can be high or low. Some plans even have family deductibles that place a “cap” on how much your entire family may pay for a deductible.
- Calendar year deductibles restart on January 1st.
- Plan year deductibles restart on the first day of the plan.
Health Insurance Deductible
Posted in Definitions