What is Calendar Year Deductible Health Insurance?

Calendar year deductible health insurance is a type of health insurance plan that requires the policyholder to pay a certain amount of money out of pocket for healthcare services before the insurance coverage kicks in. The deductible is reset every calendar year, typically on January 1st.

How Does a Calendar Year Deductible Health Insurance Plan Work?

Let’s say you have a calendar year deductible health insurance plan with a $2,000 deductible. You get sick in February and go to the doctor, which costs $500. You will have to pay the full $500 out of pocket since you haven’t met your deductible yet. However, if you get sick again in June and go to the doctor, which costs $1,500, you will only have to pay $1,500 since you’ve already met your deductible for the year.

What are the Pros and Cons of Calendar Year Deductible Health Insurance?

Pros:

• Lower monthly premiums
• Good for people who don’t expect to have many healthcare expenses in a year

Cons:

• Higher out-of-pocket costs if you do have healthcare expenses
• Can be difficult to predict healthcare expenses for the year

What Should You Consider Before Choosing a Calendar Year Deductible Health Insurance Plan?

Before choosing a calendar year deductible health insurance plan, you should consider how much healthcare you expect to need in the upcoming year. If you have a chronic condition or expect to have a major medical procedure, you may want to choose a plan with a lower deductible and higher monthly premiums. However, if you’re generally healthy and don’t expect to need much healthcare, a calendar year deductible health insurance plan may be a good option for you.

What Happens if You Don’t Meet Your Deductible by the End of the Year?

If you don’t meet your deductible by the end of the year, you will have to start over with a new deductible on January 1st. However, some plans have a rollover provision that allows you to roll over a portion of your unused deductible amount to the next year.

What are Some Tips for Managing Your Healthcare Costs with a Calendar Year Deductible Health Insurance Plan?

• Shop around for healthcare services to find the best prices
• Use preventative care services to avoid more expensive healthcare costs later on
• Consider opening a health savings account (HSA) to help pay for healthcare expenses

What Are Some Examples of Calendar Year Deductible Health Insurance Plans?

Some examples of calendar year deductible health insurance plans include Bronze, Silver, and Gold plans on the Affordable Care Act (ACA) marketplace. These plans have different deductibles and monthly premiums based on the level of coverage you choose.

In Conclusion

Calendar year deductible health insurance plans can be a good option for people who don’t expect to have many healthcare expenses in a year. However, it’s important to consider your healthcare needs and costs before choosing a plan. By shopping around for healthcare services, using preventative care services, and considering an HSA, you can manage your healthcare costs more effectively with a calendar year deductible health insurance plan.