Understanding Deductibles

Health insurance is something your employees want but the many terms and conditions in health insurance coverage can be confusing. First Day Films creates health insurance, medical coverage, and human resources information videos and can help your employees understand their options. One term they need to consider when choosing insurance is the deductible.

Understanding Deductibles

A health insurance deductible is the amount the employee is obligated to pay each year before their insurance coverage begins to pay part of ongoing medical costs. Some services may be covered by insurance even before the deductible is paid such as a routine checkup or what are referred to as preventive medical services. But most insurance requires the employee to pay a deductible before coverage starts.

One thing to remember is that the deductible paid each year counts toward the out-of-pocket maximum an employee has to pay before insurance pays the remaining costs for the year. Other considerations for choosing plan deductibles include:

Some plans have separate deductibles for drugs and medical services, so the costs might be higher with such a plan
Some plans have separate limits for each person in a family as well as a total family deductible, so take this into account when comparing plans

As with all insurance, higher monthly premiums usually cause deductibles and out-of-pocket costs to be lower, so it’s important to consider all costs including premiums in estimating total annual medical costs.

If you want your employees to be better informed about their medical coverage and other employee benefits, First Day Films can help with our instructional videos. Contact us at 833-422-7332 for more information.