For a family, choosing the right deductible can be an impactful decision. Some plans work differently than others, making it important to do your research before choosing a company and plan.
Many companies offer family, or bucket, deductibles. This method that your family (as a whole) meets this deductible before your coverage starts. This is the simplest and most straightforward way of understanding the risk associated with the deductible you choose. Your family deductible is your maximum risk, not including any co-insurance you may be responsible for, after meeting the deductible.
Other companies offer single deductibles with a family deductible of two, three, or four times the single deductible. This can be deceiving when comparing plans because you may be looking at a true family deductible with one company, and a single deductible with another. It’s easy to look at two companies that offer of $3,000 deductible and believe they work the same way. However, you could really be looking at a plan with a $3,000 family deductible and a plan with the $9,000 family deductible.
Similarly, it’s important to review the out-of-pocket maximum in this same way. The out-of-pocket maximum is the most you will use in one year after the deductible. To make things more confusing sometimes the deductible is included in the out-of-pocket maximum, and sometimes it is not.
It’s Important to Know
Be sure when you are choosing the deductible for your family that you are aware of how your deductible will work.
A local independent health insurance agent is an excellent free resource that your family can use to find you the right plan.