Question

Generally speaking, when deductibles increase (say, from $250 to $500), premiums decrease. This

is because policyholders with a higher deductible are assuming more risk of loss and their policies
are priced accordingly. Increasingly common in health insurance plans provided by employers are
high deductible policies with large four-figure deductibles.


With an unpaid $1,000 annual deductible and $800 medical bill, how much will insurance pay?

Answer 1

The insurance company will not pay anything towards the medical bill because it is lower than the deductible.

When an individual has an unpaid $1,000 annual deductible and a medical bill of $800, the insurance company will not pay anything towards the medical bill.

This is because the deductible acts as a threshold that the policyholder must meet before the insurance coverage starts paying.

In this case, since the medical bill is less than the deductible, the policyholder is responsible for paying the entire $800.