Medical Insurance is important as you get cover for various critical illnesses and visits to the hospitals. You never know when you will fall sick and if you don’t have any surplus money left on you, you may be in a financial bind as to how you will pay for your treatment. If you happen to be the only breadwinner in the family, it causes a lot of stress to your loved ones to arrange for the fund as well. So, save all the trouble and pay a minimum premium each year or month and rest assured that your medical bills are being taken care of in times of need.
When taking a Medical Insurance the main factor that anyone looks into is the amount you have to pay when receiving a medical treatment. Deductible comprises a fixed amount that you will have to pay before you take advantage of the insurance benefit. This is also referred to as a co-payment when it is calculated as a percentage of treatment cost. The deductible varies from policy to policy. They vary from 0 – 30% co-payment. If your policy comes with a deductible, you will have to pay that amount when receiving treatment. If you are filing for reimbursement, you will have to pay for the entire treatment and the deductible will be subtracted from the claim amount and the remainder will be reimbursed to you.
You must be aware of the following Medical Insurance deductibles when you are taking a policy:
- Excesses: Insurance companies will not pay for the treatment until you have paid up the deductible amount from your own funds. For instance, if your policy deductible is AED1,000 and your medical expenses for the first 6 months is AED1,500, you will have to pay AED1,000 and the insurance company will pay the remainder which is AED500. The medical expenses occurring in the next 6 months of the year will be paid for by the insurance company. This type of deductible is not common in UAE. Only a few insurers offer this.
- Per visit fixed deductible: This is a very common type of deductible in UAE. The policyholder will have to pay a fixed amount every time he or she visits the doctor. This amount ranges from AED30 to AED75 per visit. This deductible is applicable for outpatient treatments only. The insurer will cover the in-patient cost without applying any deductible.
- Co-Insurance: This is a cost sharing type of deductible. The total amount for the treatment is borne by the insurer and the insured. A certain percentage is agreed upon while taking the policy. This is however a risky type of insurance to buy. If you are receiving an expensive treatment, you will end up paying a lot more. There are policies that are combined with fixed deductible and co-insurance for specific benefits. 10% co-insurance is to be paid for maternity benefits and up to 20% for dental benefits. This will impact your premium. If you are opting for an AED30 deductible per visit or 20% co-insurance, the co-insurance will be 21% cheaper than the fixed deductible premium.
Opt for a plan that bears more cost of your insurance rather than making the premium cheaper. If you are getting an expensive treatment, the co-insurance plan will end up with you paying out a lot more from your pocket and the purpose of you having an insurance and making your life easier is lost. Most insurers offer several deductible options. This makes it easier for you to find a policy that fits your price range. You can significantly lower your premium by choosing a plan with deductible. Compare all the plans and the benefits before you choose a Medical or Health Insurance. Understand all the deductibles and be aware of them when you are going in for the treatment. You will have to intimate your provider before in hand about the treatment you are getting if you wish for them to initiate the payment. Be well versed with the percentage of the co-insurance.