When you purchase a primary health insurance plan, a variety of factors define how your plan functions. Most prominently, a deductible is a specific amount of money that must be paid out-of-pocket before any health insurance benefits kick in.1 Health insurance deductibles can be high or low, so it’s important to find a plan that meets your needs.
Once you decide on a plan, there are ways to help cover costs before the health insurance deductible is reached. At Aflac, we offer supplemental insurance that works with your primary plan to create more holistic coverage. (there may be waiting periods before benefits can be used). Essentially, what your primary health insurance misses, we help cover.
Don’t wait until it’s too late. Help cover yourself and your family with affordable coverage from Aflac.
Now that you understand the meaning of health insurance deductibles let’s break down exactly how they work. Usually, the prices of the health insurance plan and the deductible amount are directly related. Typically, the more you spend on monthly payments (premiums) for the health insurance plan, the lower the deductible, and vice versa.2
Let’s visit an example to see how an insurance deductible works:
Say you injured your arm and visit the doctor to get some x-rays and a treatment plan. You have a health insurance plan with a $1,000 deductible. The costs of the x-rays, a cast, and bloodwork end up closer to $2,500.3 In this scenario, you would have to pay the entire $1,000 deductible out of pocket, and then your health insurance would help cover the remaining $1,500 in medical expenses.
In some health insurance plans, different types of treatment will have separate deductibles. For example, your health insurance plan may offer one deductible for prescription drugs and another for general healthcare expenses.4 You may have a high deductible for one and a low deductible for the other.
For some treatments and procedures, you may not need to meet the health insurance deductible and are fully covered by your health insurance plan, like most preventative care.5 This depends on the specific company and plan you choose. Also, a health insurance plan with a high deductible may be referred to as a high-deductible plan, while one with a low deductible may be called a low-deductible plan.
Let’s look at a few cost examples related to health insurance deductibles:
Now that we have discussed how deductibles work, let’s review a handful of other life insurance terms that may be helpful to understand when choosing a plan:
Now that you understand how health insurance deductibles function, you may have a better idea of the kind of support you need. Whether your deductible is in the hundreds or thousands, Aflac offers a variety of supplemental plans that can help you pay down your deductible. Our insurance plans also help assist with other out-of-pocket costs you encounter along your healthcare journey.
We offer supplemental support in specific areas like cancer, critical illness, accident, short-term disability and vision. Chatting with an agent and getting a quote can help clarify ways you can bring high insurance costs down.
Explore your supplemental health insurance options.
1-2, 4-5, 8-14 Investopedia - Health Insurance Deductible Definition. Updated Mar 14, 2022. https://www.investopedia.com/health-insurance-deductible-4773113. Accessed Jun 13, 2022.
2 Sobo Law - How Much Does a Broken Arm Cost in NY?. Updated Mar 25, 2021. https://sobolaw.com/personal-injury/how-much-does-a-broken-arm-cost-in-ny/. Accessed Jun 13, 2022.
6-7 Investopedia - High-Deductible Health Plan (HDHP) Definition. Updated Aug 15, 2021. https://www.investopedia.com/terms/h/hdhp.asp. Accessed Jun 16, 2022.
Coverage is underwritten by Aflac. In New York, coverage is underwritten by Aflac New York.
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