When is deductible applies

Over the past several years, deductibles have been gradually introduced and now they are part of most health insurance plans, including all the plans offered at nystateofhealth.

A deductible is the amount you need to spend before your insurance coverage begins. The deductible may not apply to all services.

To go a step further, there are many health plans that have co-insurance or a co-payment that kick in once the deductible has been reached. But you are still responsible for paying the co-payment. Employed individuals should also check whether their company provides the opportunity to set up a health savings plan as a way to further reduce out-of-pocket medical costs.

How it works: Your plan determines what your copay is for different types of services, and when you have one. You may also have a copay after you pay your deductible, and when you owe coinsurance.

Your Blue Cross ID card may list copays for some visits. Who is this for? Related Items How does my deductible impact my premium? Individual and family health insurance Health Insurance How does your coverage level impact your cost? Was this content helpful? Insurance Health Insurance. Table of Contents Expand. What Are Co-pays? What Are Deductibles? Preventive Services.

Real-Life Example. Is a Co-pay the Same as a Deductible? What Is an Average Deductible? The Bottom Line. Key Takeaways Co-pays and deductibles are both features of most insurance plans. A deductible is an amount that must be paid for covered healthcare services before insurance begins paying. In some cases, though, co-pays are applied immediately. No, but the two terms are often confused. Article Sources. Investopedia requires writers to use primary sources to support their work.

These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Related Articles. Health Insurance Coinsurance vs. Copay: What's the Difference?

Partner Links. A health insurance deductible is a specific amount you pay before your insurance plan benefits begin. Learn how health insurance deductibles work. Copay A copay is a fixed amount paid by an insured for covered services. Insurance providers often charge co-pays for services such as doctor visits or prescription drugs.

Out-of-Pocket Expenses Out-of-pocket expenses are costs you pay from your own cash reserves—such as medical care and business trips—which may be reimbursable. A high-deductible health plan is health insurance with a high minimum deductible for medical expenses that must be paid before insurance coverage kicks in. A Health Savings Account HSA is a tax-free savings account that can be used to pay for medical expenses not covered by high-deductible health plans.

Health insurance plans cap what you and your family spend each year for covered healthcare. Here's what an out-of-pocket maximum is and how it works.