Are health insurance deductibles based on PLAN year or CALENDAR year? What if a new plan starts Dec. 1?

Question

If based on CALENDAR year, do I get screwed every year on all expenses incurred during December? We always have a new plan on Dec. 1...so any out-of-pocket costs during December won't add up to the calendar year deductible. Then, does the meter reset to zero on January 1, and nothing I spent in December counts? Please tell me this ain't so!

Answer 1

Usually it's on the calendar year.  Our office insurance comes up May 1.  From May-December, I don't have deductibles.  It's only when the calendar changes to January 1 that I have to worry about deductibles.  The carriers do that for continuity, and ease in figuring out when deductibles start.

You can count the out of pocket expenses against the taxes filed that year.  So it's not all for not.

Answer 2

Bad news about that: Calendar Year Deductible for about 99.999% of the plans out there.

Say you started in Dec 2007.  You got a little hosed on your medical expenses counting to your deductible last year.  This year your expenses in December will count on your 2008 deductible.  So, the money you've spent on your health care throughout the year still applies in December... it doesn't get zeroed out Dec 1 AND Jan 1.

Well, no plans do that to my knowledge, but I don't know what you have, or what State you are in.  You should be able to call your carrier (the number will be on your insurance card) and ask for clarification on anything.