Saturday, May 1, 2010
One of the most common statements I hear from my patients are “I’m young and didn’t think I was going to be sick and need better medical coverage.” Most folks choose their medical insurance coverage by the size of their deduction taken from their paycheck. The deductible and out-of-pocket figures are just for their viewing pleasure. What about the unforeseen future? Mark and I will have double coverage since I’m going to subscribe for additional medical coverage next year. His employer will be changing insurance plans next year with a deductible and out-of- pocket expenses. The deductible and out-of-pocket expenses seem confusing to most people who don’t realize what they are. The deductible and out-of-pocket are just two different ways insurance companies ask for money from their clients. The deductible has higher priority over out-of-pocket request. Most deductibles can range from $100 to $10,000. A $10,000 deductible usually connects to an individual policy for most people. Ask your insurance company if your deductible is part of your out-of-pocket so you won’t pay that twice. Ask your insurance company if you have a co-payment on top of your deductible and OOP expenses. If you do have a copayment, then this amount will be applied to your OOP. If you visit your PCP and pay $25, this will be applied to your OOP. You will be covered 100% once your deductible and OOP are paid in full until the following year. Then the process starts all over again.