How Do Deductibles, Coinsurance and Copays Work?

You and Blue Cross Blue Shield of Michigan share in your health care expenses. Deductibles, coinsurance and copays are all examples of the portion you pay.

Still need help?

We're just a phone call away.

Contact us

Your deductible is the amount you pay for health care services before your health insurance begins to pay.

How it works: If your health plan’s deductible is $1,500, you’ll pay 100% of eligible health care expenses until the bills total $1,500. After that, you share the cost with your health plan by paying coinsurance.

How your deductible affects your premium

Different things affect your premium. That’s the amount you pay each month to maintain your health care coverage.

How many people are on your plan, the type of health plan and network size all lower or raise your premium. So does your health plan’s deductible.

In most cases, the higher a health plan’s deductible, the lower the premium. When you’re willing to pay more up front when you need care, you save on what you pay each month. 

Some people would rather have a smaller premium, and pay more up front for care as they go. It can make your expenses less predictable, since you never know when you might end up with a lot of medical bills.

The lower a health plan’s deductible, the higher the premium. You’ll pay more each month, but your health plan will start sharing the costs sooner because you’ll reach your deductible faster. 

Some people like knowing that when they need their insurance, they won’t have to come up with a large sum of money before their health plan starts helping with the cost. So they’d rather have a higher premium, but a lower deductible. 

Your deductible is the amount you pay for health care services before your health insurance begins to pay.

How it works: If your health plan’s deductible is $1,500, you’ll pay 100% of eligible health care expenses until the bills total $1,500. After that, you share the cost with your health plan by paying coinsurance.

How your deductible affects your premium

Different things affect your premium. That’s the amount you pay each month to maintain your health care coverage.

How many people are on your plan, the type of health plan and network size all lower or raise your premium. So does your health plan’s deductible.

In most cases, the higher a health plan’s deductible, the lower the premium. When you’re willing to pay more up front when you need care, you save on what you pay each month. 

Some people would rather have a smaller premium, and pay more up front for care as they go. It can make your expenses less predictable, since you never know when you might end up with a lot of medical bills.

The lower a health plan’s deductible, the higher the premium. You’ll pay more each month, but your health plan will start sharing the costs sooner because you’ll reach your deductible faster. 

Some people like knowing that when they need their insurance, they won’t have to come up with a large sum of money before their health plan starts helping with the cost. So they’d rather have a higher premium, but a lower deductible.