Are you planning for your Health Insurance deductible?
Make sure you budget for your deductible. These days Health Insurance is getting more and more complicated. Basically, the insurance companies need to offload the cost to you and want to look like they are offering more options. You need to know what your deductible is and your co-insurance cost is. Your deductible is just like the deductible on your car insurance. Before your insurance pays anything you are responsible for this cost.
For example, if you have a Family Deductible of $800 and incur $1300 in charges at the hospital, the hospital will charge you $800 (your responsibility). If you have a family, you can pretty much count on this $800 cost every year. So plan for it! Option 1 – within your budget, set up an automatic transfer every month into a savings account $75 – 100. Option 2 – Utilize the HSA option in your plan. Sometimes an employer will put free money for you, only because they want you to use that plan. If you don’t do this, you will end up with a pile of medical bills in 2 years you don’t have savings to pay for. Trust me.
Co-pays are different, make sure you account for those in your monthly budget as well. You should be able to estimate every month by looking at your calendar and seeing what medical appts you have lined up.
Co-insurance is like a double deductible. After your co-pay AND your deductible, you will now have to pay co-insurance, which is your share of the cost. This is all clearly outlined in your explanation of benefits. If you find it confusing, just call the number on your health insurance card, someone will be happy to explain you how much you need to pay them!
At the very least you should be able to login to your health insurance online. You can get emails every time a new claim is processed and spend some time understanding your costs better.