How insurance premiums and deductibles work

Health-care costs can add up fast. Understanding how medical costs and insurance are related and structured may help you anticipate expenses and budget better for your health. Watch this video to find out how premiums and deductibles affect your coverage - and what you can do to lower your medical bills.
Invest in You: Ready. Set. Grow. is a multiplatform financial wellness and education initiative, in partnership with Acorns, focused on improving Americans’ money knowledge.
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[@_Solace]

This system is vile.

[@jackitrelawny3464]

THIS VIDEO IS SO DANG EFFIENT AND HELPFUL. You made a highly complicated situation digestible. I know this is still confusing for a lot of patients we see, but this is a great starting point!

[@MakeWay4CJ]

This was a great explanation however, you may need to rethink these examples because they are unrealistically ridiculous! But you're not alone - it seems that every time a video is made trying to explain how premiums work, the makers always come up with the most unrealistic examples! For instance, where in the United States would you be able to find a medical insurance plan that has a premium of $100 a month? Even then, when would you ever find an insurance plan whose premium is $100 a month WITH a $1000 deductible? And of course they can claim that they chose those numbers because they were simple but at the same time, realistic premiums and deductibles are just as simple. A realistic premium would be $500 with a $2000 deductible so they could've just as easily have said that you pay $500 a month and would have to simultaneously pay out-of-pocket for any medical needs you need (office visits, x-rays and labs, etc.) until you reach the $2000 mark. See? Just as easy. So the reason that they don't give us a realistic example is not for the sake of simplicity as it is that they just don't want to highlight how high these premiums and deductibles really are! But if you truly want to help the public understand, try being a little more honest - even in your examples.

[@lizh804]

Your EMPLOYER picks the plan. Your EMPLOYER also decides how much, if any, they contribute to this plan. I pay $53 per month for great coverage (and a $1000 deductible) on myself because my EMPLOYER kicks in a lot. In my opinion, there is so much discussion on wages and demanding a minimum wage at a certain point, benefits should be discussed more openly. If you are upset about your crappy plan and don't think that it covers a lot, TALK TO YOUR EMPLOYER. If you are upset about pricing, TALK TO YOUR EMPLOYER.

[@cayjames7813]

@@lizh804 Thank you for letting us know about your plan. While it seems that your employer is generous with their employees, I was talking about the premiums that most people pay - which seems to be higher than your specific employer and is why you hear so many people complaining about their employer based plan. But again, thanks for letting us know that there's at least one employer out there that kicks in more than others.

[@chelycardenas5831]

I agree premiums for two people are in the $600 a month range for me through the Marketplace and about 1,000 a month through my employer! How can people afford this? I see why many Americans are not even insured

[@AliGee_]

Holy crap. I am a new employee and am researching which plan I want to enroll in. The high deductible plan my employer is offering has a premium of $60/month and a deductible of $1500 compared to the low deductible plan $200/month $325 deductible. There is also the HMO option that is $60/month but no deductible. I am leaning towards the high deductible since I get the option of adding an HSA. The $1500 deductible was making me wary but after seeing your example I see that it's actually not bad compared to what else is out there. Wow! Yes, this needs to be talked about SO MUCH MORE.

[@NeoAutodroid]

I laughed when they used a surgery that only costs 5k as an example. A simple adenectomy can cost you upwards of 50k. Healthcare in this country is abysmal.

[@gigistoner8004]

As an adult, I had my tonsils out and adenectomy in Austria. Spent 4 days in the hospital too. I was billed around $3,000. In the US I broke my ankle. It was over $100,000 not including PT

[@kays3599]

I feel like saving an emergency fund every month at that same rate would save you more money than insurance.... its a scam... You pay a lot every month, and when something happens... they still make you pay.... it seems like a bad investment to me...

[@Review-This]

I canceled my insurance last year from my work thinking this same way until I had can you stones and needed surgery with a stent and now I’m paying $40K so no it’s not worth the chance. You can’t plan on when you will need the benefits of your insurance.

[@kingofheartsxyz]

I am broke, sick and have no saving .. anytime i have a huge medical bill i just tell them i am broke do whatever you want to do :/

[@EchoVids2u]

Health care should be free

[@gloriagarza9989]

Why? Don't doctors deserve a fair wage? How would equipment and medications get paid for? How would the costs of medical facilities be paid for? Free... it's a nice idea but a fairy tale. And the problem is that so many people who support this idea have no problem dropping hundreds of dollars on NFL tickets or or concert tickets or ridiculous things like expensive tennis shoes. We can spend money on entertaining ourselves but not our own health care. It's time to grow up and take a little responsibility. Not everything should be free.

[@EchoVids2u]

@@gloriagarza9989 Free healthcare means the government, not patients, pays healthcare salaries through taxes. This doesn't mean lower wages for doctors; it's about changing who pays them. The costs for equipment, medications, and facilities in a free healthcare system are covered by government budgets, and funded by taxes. This allows for bulk purchasing and potentially lower costs. While individuals may spend money on luxuries, the argument for free healthcare is about prioritizing health as a societal value, akin to public education, and not about making everything free. Free healthcare is not a fairy tale; many countries have successfully implemented it. I am currently in Brazil right now, (a country with free healthcare) even though I am a foreigner I can literally walk down the street, get an appointment with a doctor, and get care. My girlfriend last week got sick, and went to the doctor, within 20 minutes they brought her in and she got an injection and it was all free. I know it's shocking to us Americans that this can be a reality. It shocked me the first time I went to Brazil. But don't listen to the propaganda that free healthcare is not achievable. If we can land a man on the moon, explore Mars with a rover, and travel to the bottom of the sea, we can get free healthcare.

[@colleenfunderburk1856]

Now I get it. Thank you.

[@anniewilliams4251]

I always wait for your videos as they are so informative and effective. Thank you for always sharing the correct information. Keep posting.

[@njorunmimisofficial]

Honestly, I find it completely pointless that you would charge your customers a Premium, various each month for insurance, and if you happen to have an accident, It requires you double pay on top of the Premium with a deductible. Logically this System is horrifically flawed and is considered a Scam, You deliberately pay their company for insurance, and is required by state-wide law, that you are required to have Auto insurance or in most cases "Full Coverage". That full coverage comes out of the insurance holders, instead of the buyer of the insurance, Instead, they choose to file you a deductible which is 500$. If any of the damages occur in that regard, the insurance money either would pay for a new car or the expenses. Which is not the right way to do things. What should happen if you pay your monthly premium charge, the Insurance company requires to pay the full coverage of the repair costs or damages that might occur between the scuffle. Not charging you a Deductible as this is something that is a Scam, I would understand if insurances charged you if you have partial coverage in this regard, But with full coverage. That deductible should not be existent in the slightest.

[@swat007jp]

Where is the link to the other videos?

[@aristote.ruhinduraruhindur1375]

Very informative! thank you!

[@chumadoshi6987]

$1000 hahahaha... More or less like 4000

[@fear_less_2020]

Thank you SO SO MUCH!!!

[@eddiew2325]

No thank you my friend will you marry me

[@user-lz7ed4iv1y]

good

[@Rebecca-asdf]

in network, out of network??? ahhhh so confusing this kind o f helps though

[@gigistoner8004]

I read too that networks can change daily. wth?

[@RDobani]

This was a dreamland scenario. The premiums this low can only make sure you almost pay all of your medical costs

[@carlosalexandertorressuria5441]

Okay...

[@Craigisbob123]

I hate it here