How Does My Deductible Impact My 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 plan and network size all lower or raise your premium. So does a plan’s deductible.

How it works

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

In most cases, the higher a 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.

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

How deductibles impact you

There’s a big difference between a $500 and a $5,000 deductible.

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.

Some people like feeling more secure financially. They like knowing that when they need their insurance, they won’t have to come up with a large sum of money before their plan starts helping with the cost. So they’d rather have a higher premium, but a lower deductible. It makes your costs more predictable.

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