Difference Between Health Insurance Deductibles and Co-Pays

The Difference Between Health Insurance Deductibles and Co-Pays

• Health insurance deductibles are not the same thing as co-pays.
• If a health insurance policy has a $50 co-pay and a $500 deductible, then the insured is responsible for paying for the first $500 of health care costs under his policy.
• After he has met the $500 deductible, then he is responsible for paying a $50 co-pay for each claim filed under his health insurance policy.
• The insurance company will pay the remainder of the charges due for each visit as long as the place providing medical care is covered under the health insurance policy.

How Health Insurance Deductibles Are Used

Health Insurance Deductibles Explained

• If a health insurance policy includes deductibles, then the insured must pay a certain amount of money toward his health care before the insurance company has to pay anything under the health insurance policy.
• For example, if an insured has a $1,000 deductible toward his hospital/surgical coverage, then he is responsible for paying the hospital for the first $1,000 of health costs incurred.
• After he pays the first $1,000, then the insurance company will begin paying toward health care costs after the first $1,000 as paid out under the agreed to terms of the policy.