What exactly is a "deductible?"

I'm asked this question every single day. Honest. The insurance industry has so many different terms that get confused with each other or just don't make a lot of sense. So let me clarify it for you!

If you Google "deductible definition" this is the result; A specified amount of money that the insured must pay before an insurance company will pay a claim. Seems pretty straight forward. Most people assume "okay, I have a $1000 deductible so that means I pay everything out of pocket until then, right?"

Not necessarily. Every company and plan is different. There are some plans where that is absolutely the case. But there are others that have a designated set copay amount for things like primary care visits, specialist visits, urgent care, bloodwork, outpatient mental health services, etc. Whatever you pay out of pocket generally applies to the deductible as well.

So if you have a deductible dependent plan or one with set copays, amounts paid by you for covered services chip away at that deductible amount. In other words, don't let a higher deductible scare you! It's always best to speak with a licensed agent like myself to ensure you fully understand the benefits/coverages and are getting the best plan for your individual needs.

Thanks for reading! I look forward to assisting you further in the future - Shelly Taylor