“It is health that is real wealth…” -Mahatma Gandhi
Have you ever questioned your current health insurance costs? What are you paying annually? Do you know the difference between your deductible vs. out-of-pocket maximum costs? When choosing the right health insurance plan for you and your family, it is important to understand the difference between your deductible and maximum out of pocket expenses. This will help you to plan ahead for any unforeseen circumstances, annual visits and make sure you are supported in caring for your health care needs.
The deductible you choose is the total amount that you’ll need to pay out of pocket prior to your insurance plan kicking in. Once you meet your annual deductible, which varies depending on the plan you’ll choose, your insurance may pay a certain percentage until you meet your out-of-pocket expenses or all of your other healthcare expenses depending on your plan. The total amount that you need to pay each year and what your plan entails will be listed in your coverage breakdown and plan documents.
The out-of-pocket maximum that you may reach, is the total amount of expenses you will ever have to pay in a calendar year. For example, if you need to visit the doctor more frequently and have already met your deductible, the total amount you will have to pay in a year is your out-of-pocket maximum. However, both your out-of-pocket and deductible do not include your monthly premiums or other certain expenses.
Research shows that in 2021, deductibles ranged from $0 to $8,550 for individual health insurance plans and up to $17,100 for families. If you choose a plan that has a higher monthly premium payment, it will usually have a lower deductible that you will need to meet, and possibly lower total out-of-pocket expenses.
Your monthly premiums will not count towards your deductible, as well as co-payments in most cases. In addition, if you ever receive care that is out of network or a procedure not covered by your insurance, you will have to calculate in those extra costs. There are various types of health care plans available today. Planning ahead and considering all of your health care needs will help you to prepare in advance and stir clear of any unnecessary fees.
Navigating through health care plans and need help choosing the best insurance plan for you? UrHealth Benefits is here for all Ur (your) healthcare needs. Not sure if you qualify for special enrollment and don’t know where to start? Whether you are looking for Life, Individual & Family Health, Supplemental, Travel and Medicare Insurances, UrHealth is here as a resource for you and your loved ones.
Contact UrHealth Benefits to find the best personalized plan that fits your lifestyle and to simplify the insurance process.