If you are buying health insurance for yourself and your family in Mapleton, UT, for the first time, learning the difference between deductibles and co-pays is crucial. Some people confuse these two terms and have no idea how they play into the overall cost of your policy. Maple Mountain Insurance Services can explain their meaning and help you find coverage that fits your budget.

What Is a Deductible?

A deductible is the annual amount of money you must pay for health services before your insurance begins sharing the cost. It’s also known as your out-of-pocket expenses. If you have a policy that covers your entire family, it may specify separate amounts for individual services and a whole-family deductible. Most policies fully cover the cost of preventive care and other specified services before you meet your deductible. For example, if you have a procedure that costs $1,500 and your deductible is $2,000, you’ll pay the entire cost, plus any other services, until you reach $2,000.

What Is a Co-Pay?

A co-pay is the set amount you pay for a covered medical service or prescription. It represents a portion of your costs that your insurance plan does not cover. Co-pays can vary according to the type of service or medication provided. Understanding how co-pays work empowers you to budget for health care expenses and make informed decisions about your medical care. Co-pays generally continue throughout the year, even after you have met your deductible. The amount of your co-pay typically does not count toward your deductible.

You may also have to pay the full cost of services that your insurance doesn’t cover.

Maple Mountain Insurance Services can help you compare health insurance plans and analyze your potential out-of-pocket costs. Contact us to get started on a policy. We’re currently serving Mapleton, UT.