What is A Health Insurance Deductible Apex? Explanation Below May Answer.
For those of you who take a health insurance may come up with a question, What is a health insurance deductible apex? Before we find the answer of it, it is better for you to know about things related with health insurance. In order to avoid the health insurance not being paid by the insurance company, the policy holder (health insurance user) is expected to learn about the important jargon related with health insurance and understand the process of health insurance coverage (what kind of health problem or treatment that can be claimed or can not be claimed).
For some people, to select the health insurance can be too much confusing. There are often many people do not want to get too confuse with the plenty of choices being offered by health insurance company, thus this condition make the potential customers usually just say agree and accept to use the health insurance without having a clear understand about some unfamiliar jargon definition and how they really work. In fact, it needs a high and careful consideration when choosing health insurance, because there are many items that you should keep in mind to make sure the health insurance that you choose can cover all of your personal needs, age as well as the health complaints. Thus, below lists are several frequently ask question (FAQ) and explanation related with health insurance deductible apex:
I do not understand about the definition of certain health insurance terms and how it works, what should I do?
If you are confused about unfamiliar terms in health insurance such as deductible, premium, copay and many more, then you should ask directly to the people in charge in your chosen health insurance company. It is very fundamental for you to understand about these terms because it would help you to process the health claim quickly and more accurate. Besides, by understanding the unfamiliar terms of health insurance, it is easier for you to choose which health insurance that suits best your needs and financial. In this modern day and age, where people are getting more aware to their health and many of them choose to apply health insurance, many companies have also received an increasing number of health claim varieties. In order to follow up this trend, many health insurance companies provide the customer several easy ways to choose and claim their insurance. One of the ways is that most companies have started giving special channel which contains description of terms in insurance. This is even easier and very helpful for potential clients to select and purchase their suitable health insurance products.
what is a health insurance deductible apex? Is it similar to health insurance premium?
Deductible or often called as Own Risk (OR) means a specific amount of fees to be paid by the health insurance holder in case any health treatment fees are going to be claimed.
Health insurance deductible is different with health insurance premium. The premium is fees that you need to pay for health insurance company every month in order to maintain your health treatment fees coverage. The fees that you pay for the health insurance premium do not include your health insurance deductible apex.
Many health insurance companies implement this deductible policy for their customers due to some factors as below:
- In order to make the health insurance holder to be more careful of their own health and make them to be wiser on spending expenses to pay their health treatment fees. Because when the health insurance holder use deductible policy and want to claim their health treatment fees, the health insurance company will not fully cover the claim. The health insurance holder still need to pay for certain amount of fees to complete the payment based on the prior agreement between the health insurance holder and the health insurance company during the registration process. For example, if certain disease occurs to a health insurance holder, then he / she needs to be aware that their health treatment claim will not 100% be compensated by the health insurance company. There are still costs incurred for the holder to pay. With the implementation of this deductible policy, the health insurance holders will also be more careful to avoid any catastrophe risks.
- In order to avoid loss of small amount of fees. In most cases, the fees to finalize the claim process for such health treatment can be greater than the fees of health treatment itself. Thus, usually, the health insurance company will not cover the fees for registration process or any other administrative costs for such health treatment claims. For example, if a health insurance holder wants to claim only Rp 50.000, in fact, the claim process requires several condition and requirement to be fulfilled, especially in terms of evidence, then the cost to process this can be more expensive than the value of the health treatment claim itself. Deductible policy will help the health insurance company to avoid this small cost of administration process.
- In order to reduce the premium costs to be paid by the health insurance holder
This point is usually aims to give further special services by giving an ease access to pay less for the premium annual cost of health insurance to the health insurance holders. The common rule of paying the premium cost as below:
- Deductible or own risk is high, then lower premium health insurance costs
- Deductible or own risk is low, then high premium health insurance costs.
Deductible policy can be used as barometer for insurance rate negotiation.
The principle is when the deductible amount is big, then the insurance negotiation rate tends to fall. So, the next question may come up, how do we determine the amount of deductible cost to make a suitable the premium cost? For this case, the answer is related with risk management to talk about the importance and relevancy of deductible policy with insurance rate negotiation.
Those are some information which hopefully answer your question related with “What is a health insurance deductible apex?”