How insurance premiums and deductibles work

Health-care costs can add up fast. Understanding how medical costs and insurance are related and structured may help you anticipate expenses and budget better for your health. Watch this video to find out how premiums and deductibles affect your coverage – and what you can do to lower your medical bills.

Invest in You: Ready. Set. Grow. is a multiplatform financial wellness and education initiative, in partnership with Acorns, focused on improving Americans’ money knowledge.

[jackitrelawny]

THIS VIDEO IS SO DANG EFFIENT AND HELPFUL. You made a highly complicated situation digestible. I know this is still confusing for a lot of patients we see, but this is a great starting point!

[MakeWayCJ]

This was a great explanation however, you may need to rethink these examples because they are unrealistically ridiculous! But you're not alone - it seems that every time a video is made trying to explain how premiums work, the makers always come up with the most unrealistic examples! For instance, where in the United States would you be able to find a medical insurance plan that has a premium of $100 a month? Even then, when would you ever find an insurance plan whose premium is $100 a month WITH a $1000 deductible? And of course they can claim that they chose those numbers because they were simple but at the same time, realistic premiums and deductibles are just as simple. A realistic premium would be $500 with a $2000 deductible so they could've just as easily have said that you pay $500 a month and would have to simultaneously pay out-of-pocket for any medical needs you need (office visits, x-rays and labs, etc.) until you reach the $2000 mark. See? Just as easy. So the reason that they don't give us a realistic example is not for the sake of simplicity as it is that they just don't want to highlight how high these premiums and deductibles really are! But if you truly want to help the public understand, try being a little more honest - even in your examples.

[swatjp]

Where is the link to the other videos?

[NeoAutodroid]

I laughed when they used a surgery that only costs 5k as an example. A simple adenectomy can cost you upwards of 50k. Healthcare in this country is abysmal.

[kays]

I feel like saving an emergency fund every month at that same rate would save you more money than insurance.... its a scam... You pay a lot every month, and when something happens... they still make you pay.... it seems like a bad investment to me...

[anniewilliams]

I always wait for your videos as they are so informative and effective. Thank you for always sharing the correct information. Keep posting.

[kingofheartsxyz]

I am broke, sick and have no saving .. anytime i have a huge medical bill i just tell them i am broke do whatever you want to do :/

[chumadoshi]

$1000 hahahaha... More or less like 4000

[Rebecca-asdf]

in network, out of network??? ahhhh so confusing
this kind o f helps though

[njorunmimisofficial]

Honestly, I find it completely pointless that you would charge your customers a Premium, various each month for insurance, and if you happen to have an accident, It requires you double pay on top of the Premium with a deductible. Logically this System is horrifically flawed and is considered a Scam, You deliberately pay their company for insurance, and is required by state-wide law, that you are required to have Auto insurance or in most cases "Full Coverage". That full coverage comes out of the insurance holders, instead of the buyer of the insurance, Instead, they choose to file you a deductible which is 500$. If any of the damages occur in that regard, the insurance money either would pay for a new car or the expenses. Which is not the right way to do things.

What should happen if you pay your monthly premium charge, the Insurance company requires to pay the full coverage of the repair costs or damages that might occur between the scuffle. Not charging you a Deductible as this is something that is a Scam, I would understand if insurances charged you if you have partial coverage in this regard, But with full coverage. That deductible should not be existent in the slightest.

[RDobani]

This was a dreamland scenario. The premiums this low can only make sure you almost pay all of your medical costs