eli5 employee benefits deductible

Question

i am simply not understanding what exactly a deductible is does that mean
if my deductible is 3,000 and i use to it to go to therapy i have to pay 3,000 in therapy sessions before they start to cover it or like how does it work?
(i’m 25 and don’t rlly have parents to explain it to me and google is just confusing me)

In: Economics

Answer 1

Yes, that’s how a deductible works. There may also be other important details to be aware of, so you should read your policy carefully.

For instance, you might have a 3k deductible with 20% coinsurance and a 10k out of pocket max. In this case, you’d pay the first 3k yourself, then the insurance would pay 80% and you’d pay 20% until you had paid another 7k yourself, at which point the insurance would cover 100% of the remaining cost.