So what is a deductible?

A deductible is the amount of money you have to pay before the insurance company policy kicks in and pays. So if you had an $800 medical bill and a $500 deductible, you would pay $500 and then the insurance company would pay $300. The good news is that those deductibles are often a yearly deductible or has a maximum out of pocket amount. So if you had another bill after that one, likely the insurance company would cover it in its entirety. When you get a low cost medical insurance policy, you should check to see if the deductible is per claim, per year, or something else. Also, check to see what the maximum out-of-pocket expense to you will be.

What are your needs?

Before you can decide on the right deductible, you need to figure out your needs for your medical insurance policy.  Do you have a lot of prescription drugs and plan to visit the doctor often because of frequent illness? Then you probably want a low deductible with what is called a co-pay.  Co-pay is sort of a mini-deductible for doctor visits and prescriptions. You pay something like a $15 co-pay, and the rest of the doctor’s visit is likely to be free unless there is something very special that needs to be done. The same goes with the prescriptions.  Just pay your co-pay, and the insurance company picks up the rest of the cost.  When it comes to major procedures then, your lower deductible needs to be paid before the insurance company pays the rest.  This will cover you well, but will likely be expensive unless you are in a group at your work with lots of other people to help lower the cost. Fewer and fewer employers are paying all or part of that premium these days like they used to.

However, let’s say you are young and in good health with few if any prescriptions. Then you could consider something with a higher deductible, like a major medical policy for low cost medical insurance premiums. A major medical policy doesn’t cover prescriptions or doctor’s visits, and makes you pay out more for your deductible. You do, however, get covered from going broke from medical bills if some major illness or accident happens to you. Your insurance premiums are also much lower. So the general rule is the lower the deductible, the higher the premium. The higher the deductible the deductible, lower the premium. Pick what’s right for you. Most experts in the insurance business suggest that you obtain a minimum of three free online quotes.