Manipulating the Health Insurance Policy Deductible for Cost Savings

With the United States ranked 37th in healthcare, by the World Health Organization, many public officials are beginning to examine key components of the healthcare plans.   Whether insured under a PPO, HMO, Indemnity Plans, you may become the victim of financial disaster simply through a deductible maze.  So, how do we elaborately work through the maze?  Let's first examine what a deductible is.

A deductible.  Commonly referred to as a clause, within an insurance policy, which relieves an insurance company from the responsibility of paying on a claim until a specific dollar loss is reached.   In other words, your stated insurance deductible will be the amount you are expected to pay towards your personal healthcare services before the insurance company will begin to pay any portion of your loss.   Listed in the Summary of Benefits portion of your policy, the deductible is clearly stated and may range from $50, as seen in dental plans, to amounts in excess of $10,000, as seen in individual indemnity or catastrophic plans.   As a general rule, there is a reverse relationship between premium rates and deductibles.  That is to say, the higher your deductible, the lower your insurance premiums.

Insurance coverages such as auto, homeowners and Medicare all carry deductible provisions.   Medi-gap is generally carried by seniors to aide in covering the deductible expenses imposed by Medicare.   However, the auto and homeowner's policy has no such option for waiving the deductible.   It is also important to note that most life insurance, disability and workers' compensation plans will not impose a deductible upon the insured.