The beginning of the New Year is not just a time to state your New Year’s resolutions (most of which will probably be broken with a few weeks), but, it is a time to begin your new yearly healthcare insurance deductible. Your healthcare deductible, as you know, is the amount you owe for covered healthcare services before your health insurance plan kicks in and begins to pay. As an example, if your healthcare insurance deductible is $1,000.00, your plan won’t pay for anything until you’ve paid $1,000.00 out of your own pocket for covered services. There are exceptions to the rule in that some plans pay for certain health care services before you have met your yearly deductible. For those blessed with good health, they may never reach their yearly deductible, especially if the deductible is high, where others may have racked up doctor visits, laboratory or prescription charges and will have met their deductible early on in the calendar year.
Deductibles for health insurance are much different than that for car insurance and home insurance… sure, you must inevitably pay out of your own pocket until your deductible is met, but, the biggest difference is that the deductible does not begin anew each calendar year. Deductibles for property damage works differently than a typical health insurance policy with its single annual deductible for the policy. With an auto or homeowners insurance policy, the deductible applies each time you file a claim. The one major exception to this is in Florida, where hurricane deductibles specifically are applied per season rather than for each storm.
Since, most people have a basic understanding how health insurance deductibles work, let’s look at this topic as it applies specifically to car and home insurance.