Deductible or excess is the amount of money the insured is responsible for paying when making a claim. Some International Health Insurer applies a Standard Excess for Outpatient Claim. They also offer an option to have Voluntary Deductible or Excess to get Premium Discount.
The two types of deductibles generally encountered by the insured are “per condition” and “per year”.
Generally, insurance companies offer plans with three types of deductibles:
1. Annual
The amount per policy year not covered by the insurer. The insured is responsible for the deductible/excess and is fully reimbursed for any expenses above this deductible/excess.
For example: If the insured’s annual deductible is $2,000 and the visit to a doctor costs $350, then all the cost has to be paid by the insured. When the insured has visited the doctor 6 times then the total is $2,100. Therefore the insured will be reimbursed $100
2. Per Condition
This is the most common type of deductible / excess and is applied only once for a course of treatment.
For example: The Insured has agreed for $50 deductible /excess per condition, when a total treatment cost comes to $100, the insurance company reimburses $50. If the insured visits to the doctor five times for the same illness and cost $500, the insured is reimbursed $450.
3. Co-insurance
The insured is reimbursed based on the percentage of the total cost. If the co-insurance is 20%, then the insurance company is responsible for 80% of the total cost; the rest is paid for by insured.
For example: The insured co-insurance is 20%, if the total bill comes to $100, the insurance company reimburses $80, and the policyholder pays the remaining of $20.