0
In insurance terms what is the difference between Deductible and Max out of pocket expense?
Wiki User
∙ 15y ago
The annual out of pocket maximum refers to the actual amount of money you will pay for your medical cost before an insurance plan pays 100% of your bill. For example, if you have an "80/20" plan with a deductible of $2000.00 and a maximum out of pocket of $5000.00, you would be responsible for paying the first $2000.00 of the hospital bill, then the insurance company would pay 80% of the bill and you would pay 20% of the bill. Now, you've already paid $2000.00 so you have $3000.00 of your max out of pocket to pay. Once your 20% of paying that bill reaches the balance of that $3000.00, you would have paid your maximum out of pocket total of $5000.00 and the plan would then pay the remainder of the bill 100%.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
Can you deduct private mortgage insurance?
PMI is not a deductible expense.
Can insurance co-pay be tax deductible?
If you are referring to a MEDICAL/HOSPITALIZATION insurance co-pay, yes, that is deductible as a medical expense. And on property/casualty insurance, it may be deductible as a casualty loss.
What is the difference between prepaid insurance and insurance expense?
When payment for insurance is made advance of actual expenses then it is called prepaid insurance which is asset for business until insurance benefit is utilized while insurance expense is actual insurance expense when insurance benefit is taken.
Is there a deductible on comprehensive coverage auto insurance?
Usually there is a deductible on comprehensive coverage auto insurance. The deductible can range in different amounts usually from 0 to $1000 or even higher if it is a very expense vehicle.
What is a situation in which people have to pay a deductible?
When their insurance policy only covers part of a medical expense
Which one of these describes a situation in which people have to pay a deductible?
When their insurance policy only covers part of a medical expense.
In the medical field what do they mean by the payment was applied to the deductible?
Deductible means the amount of Covered Expense you must pay for Covered Services before certain benefits are available to you under this Combined Evidence of Coverage and Disclosure Form. Your annual Deductible is stated in the Part entitled ?MAXIMUM LIFETIME BENEFITS, ANNUAL DEDUCTIBLE, CO PAYMENTS AND ANNUAL OUT-OF-POCKET MAXIMUM.If your deductible has not been paid, the insurance company has the right to withhold the deductible amount first and then pay out the difference.
Should you report a minor accident to your insurance if the third party may not make a claim and the repair is more than your deductible?
You might want to calculate how much out of pocket expense you would have after the deductible. Compare that with how much your rates might go up. If there is a significant difference either way, that should be a part of your decision.
Is acupuncture fees a deductible medical expense?
Yes, to the degree your medical expenses are deductible
Does the Blue Cross open enrollment insurance plan have basic hospital expense coverage?
Most plans do indeed have basic hospital expense coverage. Some plans may require a deductible or co-pay.
Is rent expense deductible with the IRS?
No. Personal expenses are not deductible on your 1040 income tax return.
What is the definition of covered medical expense?
A covered medical expense is an event/procedure that your insurance company will pay for, in full or in part (perhaps with a co-pay or deductible). Uncovered expenses are things you're expected to pay out of pocket.
