What is a deductible in a health plan?
A deductible is the amount of eligible medical expenses that must be paid by the insured before the insurance company begins to reimburse for covered expenses – usually over a calendar or policy year basis. For example, if you incur $5,000 in expenses with a plan that has a $500 deductible, you pay for the first $500 in charges and the insurance company pays the remaining charges.
Related Questions
- Can an individual who is not covered by a high deductible health plan HDHP for the whole year contribute the maximum annual limit established by the IRS?
- Do I have to be enrolled in a High Deductible Health Plan (HDHP) to contribute into an HSA (Health Savings Account)?
- Does the Pool offer a High Deductible Health Plan that qualifies for a Health Savings Account?
