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What are the Deductibles in Health Insurance in India?

The minimum balance a policyholder pays before the insurance companies start paying their medical bills is called a deductible in health insurance. It has become impossible to pay medical bills for a minor treatment nowadays. The medical bills are soaring high and are putting a hole in the pockets of regular people. Health insurances provide financial backup when needed, i.e. when paying medical bills.

Therefore, many insurance companies started medical health insurance to help people pay medical bills for themselves and their loved ones without thinking of medical expenses. These policies/insurances can reimburse up to 80% of the medical bills. But these medical health policies come with a jargon called health insurance deductible. 

Not everyone is blessed with good health, but it doesn’t mean that one has to die of all the medical expenses that occur for the treatments of some terminal illnesses. Hence, these health insurances play a significant role. In this article, we will elaborate more on the use of deductibles in health insurance, their meaning, and their benefits.

What is Deductible In Health Insurance

Assume Shikha has a medical cover of 10 lacs. She goes for an eye treatment which costs her about rs.12,000. Now you wonder, in this case, what is deductible in health insurance? The answer is that the policy covers eye treatments of about rs.10000 every year. Because of this, she only gets a cover of rs.2000 from the policy and the rest she will have to pay on her own. 

Therefore, all policyholders must thoroughly read policy terms and wording before signing them. Because in such cases, one can opt for policies with no deductibles. Deductibles in motor insurance are also exact. 

Illnesses and diseases are a part of life, and the burden of paying for treatments can be reduced by using medical health insurance. These policies reimburse the policyholder’s medical expenses and pay the care provider directly.

So, let us discuss what is deductible in health insurance with benefits.

Pros Of Health Insurance Deductible

It is not hard for policyholders to make sense of their deductible in health insurance because of the following benefits: 

  1. Monthly premiums are lower in deduction health insurance. 
  2. It covers all the basic preventive services like flu and annual physical exam. 
  3. Policyholders can opt for a pretax HSA (Health Saving Account), in which policyholders do not have to pay taxes. 
  4. It is an alternative to pricy medical procedures. 
  5. It avoids unnecessary claims from the policy the policyholders.
  6. It provides financial support to policyholders for high and unexpected medical expenses.
  7. It covers screenings and shots expenses in some cases almost at no cost.

Cons Of Health Insurance Deductible

Time to discuss some drawbacks of deduction health insurance: 

  1. Patients have to pay medical bills until they reach health insurance deductibles. 
  2. Routine blood work and lab tests are not included/covered. 
  3. It does not include any follow-up procedure costs. 
  4. Policyholders will get some coverage in case of unfortunate emergencies, but they are more likely to be expensive. 
  5. At the time of claim, policyholders must shell out a lot higher amount before the insurance starts covering medical expenses. 
  6. Policyholders must pay a premium to stop the health insurance deduction from the policy.

How Does Deductible In Health Insurance Work?

Deductible in health insurance is the fixed sum of the amount a policyholder must pay before the issuer insurance company starts paying up to cover the rest of the medical bills. In other words, the insurance company is liable to pay the amount claimed only when it exceeds the deductible that is over and beyond the deductible. For high-deductible health insurance policies, the premium is lower. And the low deduction health insurance has a higher premium. 

Before signing any deduction, health insurance customers need to know what is deductible in health insurance. How much is the deduction for health insurance? The date when the deductible rolls over? What doesn’t count towards the deduction of health insurance? Deductible vs copay. Do they have different deductibles, and how often can they meet them? Readers, if we need vehicle insurance, how important is medical insurance for us? It saves us all from injury or illness expenses for a long.

What Are The Types Of Health Insurance Deductible?

Two types of deductibles, namely, compulsory and voluntary health insurance deductibles in India. Now people ask what is a reasonable deductible for health insurance. Let’s explore a little to get the answer to this question.

  1. Compulsory deductible– The insurance company governs it, and a policyholder has to pay the required deductible up to the limit. The premium remains the same as the amount of the deductible. At the time of claim, policyholders only pay the compulsory deductible set by the insurance company at the time of issuing the policy.
  2. A voluntary deductible is a health insurance deductible where the policyholder needs to opt for such deductibles. If the deductible amount is higher, the premium is undoubtedly lower. At the time of claim, policyholders only pay the voluntary deduction health insurance set by the insurance company at the time of issuing the policy.

Readers, we hope we have made you understand what is deductible in health insurance in detail today. Now let’s figure out what is deductible vs copay in health insurance.

No matter your age or gender, every individual must opt for deduction health insurance or non-deduction health insurance.

Deductible vs Co-payment

It is a very common mistake in health insurance policies. A co-payment is determined as a pre-defined sum of the amount the policyholder must pay each time they get any health care service. Copays are a fixed fee and a percentage. It is an outpatient expenditure and includes emergency room visits. A larger copay means lower premiums. 

A deductible, conversely, is a fixed sum of the amount that a policyholder must pay each year before their health insurance kicks in completely. It is a rupee amount. It is like a tax we pay every year. 

There are a lot of different factors involved, like medical histories, present medical conditions, lifestyle, good physical condition, etc., that will let a policyholder opt for a deductible or not in their medical insurance. Therefore, customers need to review all the health insurance details and understand the terms and conditions before signing up. Nowadays, insurance companies provide the facility of adding deductibles or not in medical health insurance from the comfort of your home! 

Hence, it is up to an individual to decide whether a copay is better or deductible. A sit works differently for all. So, please take it as an investment for your body and well-being. Ensuring one’s health is insured is the most considerable responsibility oneself.

I hope It has cleared your doubt about what is deductible in health insurance.

FAQs

Q1. What is deductible in health insurance? 

A1. A health insurance deductible is a fixed sum of the amount a policyholder must pay each year before their health insurance kicks in completely. That is a rupee amount and is like a tax we pay every year. 

Q2. What is a good deductible for health insurance? 

A2. A premium-deductible policy is a good deductible for health insurance. 

Q3. What are the two types of deductibles in health insurance? 

A3. Compulsory and Voluntary are the two kinds of deductibles available. 

Q4. Does all health insurance have deductibles? 

A4. No, there is health insurance with no deductibles at all too. 

Q5. What is the purpose of a deductible in health insurance? 

A5. The purpose of medical insurance deductible is to cover heavy medical bills.

Q6. What is the main difference between Deductible vs Co-payment?

A6. Copays are a fixed fee and a percentage, whereas deductible is a rupee amount like a tax we pay yearly.

Q7. List three drawbacks of deductibles in health/medical insurance.

A7. At the time of claim, policyholders must shell out a lot higher amount before the insurance starts covering medical expenses. They have to pay a premium to stop deductibles from the policy, and patients must pay medical bills until they reach health insurance deductibles.

Q8. List three advantages of the health insurance deductible.

A8. Policyholders can opt for a pretax HSA (Health Saving Account) in which policyholders do not have to pay taxes, it provides financial support to policyholders from high and unexpected medical expenses, and it covers basic preventive services as well as flu and annual physical exam.

Q9. What is health insurance all about?

A9. Insurance covers all types of medical expenses that arise due to an illness/ terminal sickness. These expenses include hospitalization costs, medicines, screening costs, doctor consultation fees, emergency medical expenses, etc. 

Q10. How can I buy a high-deductible policy?

A10. If a customer has good medical history and is young, they are likely to get high deduction health insurance.

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