What is a deductible and how does it work?

A deductible is an important concept in health insurance that refers to the amount of money an insured individual must pay out of pocket for healthcare services before their insurance coverage begins to contribute. Essentially, the deductible is the initial financial responsibility that the insured person must fulfill before their insurance plan starts to cover eligible medical expenses. For example, if a health insurance plan has a deductible of one thousand dollars, the insured person is required to pay the first one thousand dollars of their own medical bills. This amount can include various healthcare costs, such as doctor visits, hospital stays, and diagnostic tests, depending on the specifics of the insurance policy. Once the deductible has been met, the insurance company typically starts to pay for covered services, although the insured individual may still be responsible for co-pays or co-insurance depending on the plan’s structure. Deductibles can vary significantly between different plans and may reset annually. It is important for individuals to understand how their specific plans work, including what types of expenses count towards the deductible and whether there are any exemptions for certain services. For more information about the details of plan options and benefits, it may be helpful to refer to the official EmblemHealth website.