A customer asked about the “Annual Deductible”. What does “annual deductible” mean? Do I have to pay the annual deducible every year? And, do I have to pay this in addition to my monthly premium? The deductible is the amount you pay out of your pocket before certain benefits become available. By “annual”, we mean that you can satisfy the deductible in a calendar year, January to December. Also, it is important to be aware that your deductible will refresh each year on January 1st. The deductible can be met in a year, but is not required. Often, if you are healthy you will not reach your deductible.  

The out-of-pocket expenses you pay when working toward your deductible are over and above your monthly premium. Before and after the deductible is met, you still must pay the monthly charge to keep the health insurance policy in force. If your deductible is $1500 and you pay $1500 in out-of-pocket expenses during the year, that deductible has been met and increased coverage benefits kick in. With some plans, once the deductible is met, you pay copayments. Other plans like the $0/$1500 Deductible Plan with HSA offer 100% coverage once the deductible is met, meaning there is no additional charge for doctor visits, prescription drugs, hospitalization, etc.