As we get into open enrollment for individual health insurance, Medicare Part D Drug plans, and many group insurance plans, it’s probably a good idea to review some important terms.
Deductible – the dollar amount an insured individual must pay for covered expenses during the plan year (often the same as the calendar year) before the plan begins paying any benefits.
Co-pay/co-payment – the amount an insured individual must pay toward the cost of a particular benefit. For example, a plan might require a $25 co-pay for each doctor’s office visit. This may or may not apply to the deductible. Read the fine print!