Deductible
The amount you must pay out-of-pocket for healthcare before your insurance starts covering costs.
What is Deductible?
A deductible is the amount you pay for covered healthcare services before your insurance plan starts paying. For example, if your plan has a $2,000 deductible, you pay the first $2,000 of covered services yourself. After that, your insurance starts sharing the costs.
Deductibles reset annually, typically on January 1st for calendar-year plans or on your plan's anniversary date for other plans. Some plans have separate deductibles for different types of care, like prescription drugs or out-of-network services.
High-deductible health plans (HDHPs) have minimum deductible requirements to qualify for HSA eligibility. For 2024, this means at least $1,600 for individual coverage or $3,200 for family coverage.
Frequently Asked Questions
Does everything count toward my deductible?
Most covered services count, but premiums don't. Preventive care may be covered before you meet your deductible on HDHPs.
Do family plans have one deductible or multiple?
Many family plans have both individual and family deductibles. Once any member meets the individual deductible, coverage kicks in for that person.
What's a good deductible amount?
It depends on your health needs. Lower deductibles mean higher premiums. If you're healthy and have savings, a higher deductible with an HSA can save money overall.
Related Terms
High-Deductible Health Plan (HDHP)
A health insurance plan with a higher deductible and lower premiums that qualifies you to open an HSA.
Out-of-Pocket Maximum
The most you'll pay for covered services in a plan year, after which insurance pays 100%.
Coinsurance
The percentage of costs you pay for covered healthcare services after meeting your deductible.
Copay (Copayment)
A fixed amount you pay for a covered healthcare service at the time of the visit.
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