Deductibles

A deductible, also known as excess in the United Kingdom, is the amount of money that the policyholder pays towards the cost of any treatment received, and is deducted from the reimbursable sum. Typically, an international health insurance policy will be accompanied by a deductible. This may be placed on the policy by the insurer to protect the company from a specific type of risk, or can be selected by the policyholder to reduce the overall plan premium.

The three most common types of deductible are as follows:

Per Condition
A per condition deductible is applied on each specific condition that a policyholder may receive treatment for. The deductible amount is agreed upon by both the insurer and the policyholder.

Example: A policyholder receives treatment for a broken arm; there is a $30 per condition deductible attached to the policy. If the total bill for the treatment is $100, then the policyholder will contribute $30 and the insurance company will reimburse the remaining $70.

If the policyholder visits the doctor 3 times regarding the broken arm, and the total bill for all three visits equals $300, then the insurance company will reimburse the policyholder $270.

Per Year
Under a Per Year deductible, an annual limit is agreed upon by both the policyholder and the insurance company. Once this limit has been reached, the insurance company will then reimburse any further medical expenses accrued by the policyholder.

Example: A policyholder purchases an international health insurance plan with a $100 annual deductible. After one visit to the doctor the policyholder has paid $100 in medical expenses, the insurance company will now be responsible for reimbursing any further medical costs.

Co-Insurance, Co-Pay
Typically, under a Co-pay, the policyholder will be responsible for contributing a specific percentage of the cost for each medical treatment that they receive. Co-insurance is usually applied on Maternity or Dental coverage.

Example: A plan has a 20% co-pay. If the policyholder receives medical treatment for a total cost of $100, they will be required $20 towards the final payment.

For more information about the varying types of deductibles used by most international health insurance companies, Worldwide Health Options, or to receive a free global health insurance quote, please contact us today.