Calendar Year Deductible and Plan Year Deductible

Calendar Year Deductible and Plan Year Deductible A calendar year deductible is a set amount of money that you must pay out of pocket for medical expenses before your health insurance plan starts to pay for your care, begins on January 1st and ends on December 31st. Calendar-year deductibles reset every January 1st. A plan year deductible is similar to a calendar year deductible, but it resets on the renewal date of your health insurance plan. For example, if your health plan renews on May 1st, then your deductible would run from May 1st to April 30th of the following year, and reset on May 1st. A health insurance deductible is a set amount you pay for your healthcare before your insurance starts to pay. Once you max out your deductible, you pay a copayment or coinsurance for services covered by your healthcare policy, and the insurance company pays for the rest. As a general rule, the higher the deductible, the lower your premium, and vice-versa. These deductible types depend on your health insurance plan. Most health insurance plans have a calendar year deductible, but some plans have a plan year deductible. It is important to understand the difference between calendar year deductibles and plan year deductibles so that you can plan for your health care costs. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful