WPS Health Insurance

What Are Health Insurance Deductibles? WPS Health Insurance, a Leading Provider of Individual Health Insurance, Explains

New WPS Learning Center article explores how deductibles affect health plan premiums, suggests ways to save money

MADISON, Wisconsin
April 27, 2012

Deductibles are a common feature of most types of insurance, from car to home to health. But what is a deductible? WPS Health Insurance, Wisconsin's leading not-for-profit health insurer and provider of affordable group and individual health insurance, explains this term in a new article, "Health Insurance 101: What's a Deductible?" now available free online from the WPS Learning Center.

Put simply, a health insurance deductible is the amount that a policyholder must pay toward his or her medical expenses before the insurance company begins to pay its share. "It's usually a calendar-year amount," said Jim Baird, vice president of individual sales at WPS Health Insurance. "So at the start of each year, the deductible resets and the policyholder is once again responsible for paying that amount toward his or her medical expenses."

"Let's say you have a health plan with a $1,000 deductible," said Baird. "After a stay at the hospital, you have a medical bill for $25,000. You would be responsible for paying the first $1,000 toward those expenses. After that, your health plan would begin to pay benefits for the remaining $24,000 according to the terms of your policy."

The full article,"What's a Deductible?", explains deductibles in detail, including how:

  • Many preventive care visits (such as routine exams, well-child visits, screenings, and immunizations) are not subject to deductibles
  • Deductibles differ from copays, another type of cost-sharing with which they are often confused
  • Raising your plan's deductible is usually a good way to lower your premium (the amount you pay, usually each month, to maintain coverage)
  • Family plans often have different types of deductibles–and one type in particular could save you lots of money

The article also includes information about HSA-qualified, high-deductible health plans that give members their very own Health Savings Accounts from which they can pay for qualified medical expenses tax-free.

WPS encourages individuals and families looking for more valuable health and insurance-related tips and strategies to check out the WPS Learning Center and the WPS Health Center for free articles on controlling costs, preventing illness, making wise health decisions, and other timely topics. For questions or to request a quote for a high-quality individual or family health plan from WPS, please call 888-245-4197 to talk with a friendly representative.

"A deductible is the amount that a policyholder must pay toward medical expenses before the insurance company begins to pay its share."

— Jim Baird, V.P. of Individual Sales, WPS Health Insurance

About WPS and its Subsidiaries
Founded in 1946, WPS is Wisconsin's leading not-for-profit health insurer, offering affordable individual health insurance, family health insurance, high-deductible health plans, and short-term health insurance, as well as flexible and affordable group plans and cost-effective benefit plan administration for businesses. The WPS Medicare division administers Part A and B benefits for millions of seniors in multiple states, and the WPS TRICARE division serves millions more members of the U.S. military and their families. In 2012, the international Ethisphere® Institute named WPS one of the World's Most Ethical Companies for the third straight year. WPS is the only health insurance company to earn this distinction multiple times. For more information about WPS Health Insurance, visit www.wpsic.com.