Horatio has to pay $50 out of each paycheck to his insurance company. He had a medical procedure that he had to pay out $1000 fo
r. The next time he had the procedure, his insurance company covered its entire cost. Which best describes what he was paying for?
- The $50/month is the deductible, and the $1000 was his premium.
-The $50/month is the premium, and the $1000 was his deductible.
-Both payments covered his deductible.
-Both payments covered his premiums.
The second option, The $50/month is the premium and the $1000 was his deductible.
A premium is basically a monthly bill to keep your insurance. A deductible is the fixed amount of medical costs you are responsible for paying before your insurance coverage starts to pick up the bills.
One of my really good childhood friend's mom got diagnosed with cancer about a month ago and she passed. It was really hard on her because she was really close with her mom. I'm truly sorry for her loss.