Results 1 to 8 of 8

    • Join Date: Feb 2008
    • Posts: 269
    #1

    deductible

    Hi,

    I was wondering if someone could take a look for me at this one, "deductible".
    What is the "deductible" ? I looked this word up in many dictionaries in the OneLook Search , but I still do not understand what deductible is. Could somebody tell me more about "deductible" ?

    Thanks for your help.


    Woman: Oh, looks like there's no record of a Fox River Medical Practice on our list of participating HMOs or PPOs.
    Sara: Okay, that's because we're a state penitentiary, and we're actually in kind of a unique situation here. Mr. Scofield's insurance policy from his previous employer hasn't lapsed yet. For that reason, the state's demanding that you pay for his treatment and not the taxpayers.
    Woman: Okay... Well, it says here he already met his deductible...
    Sara: Okay.
    Woman: Oh, no, wait, that's his psych deductible, not his medical.
    Sara: Sorry, "psych" as in "psychiatric"?


    • Join Date: Oct 2006
    • Posts: 19,434
    #2

    Re: deductible

    A deductible allowance for tax purposes is a sum on which you do not have to pay tax. It is deducted from your gross income.

  1. BobK's Avatar
    • Member Info
      • Native Language:
      • English
      • Home Country:
      • UK
      • Current Location:
      • UK

    • Join Date: Jul 2006
    • Posts: 16,038
    #3

    Re: deductible

    Quote Originally Posted by Anglika View Post
    A deductible allowance for tax purposes is a sum on which you do not have to pay tax. It is deducted from your gross income.
    Careful, though - the use of 'HMO' suggests it's American. In Br English a 'deductible expense' does apply to tax, but in this case the deduction seems to me like something to do with health insurance. We need a US view.

    b


    • Join Date: Oct 2006
    • Posts: 19,434
    #4

    Re: deductible

    I think you will find it is much the same - a disbursed sum of money which is excluded from assessment for tax purposes. There are more deductible expenses allowable in the US tax system than there are in the UK.

  2. Barb_D's Avatar
    • Member Info
      • Native Language:
      • American English
      • Home Country:
      • United States
      • Current Location:
      • United States

    • Join Date: Mar 2007
    • Posts: 19,221
    #5

    Re: deductible

    No, not quite.

    Depending on your medical insurance, you may have to pay a certain amount "out of pocket" before the insurance comes in. I don't have that with my medical coverage, but I do with my dental.

    I had to have filling the other day. The total cost was $80. I have a $50 deductible and then my insurance pay 80% of all the remaining cost.

    So I had to pay $50. That left $30 not paid yet, and the insurance paid 80% of that, and I had to pay 20%. So my cost was $56.

    However, if I have to have another, I will have already met my deductible, so I will have to pay only $16, and the insurance will pay $64.

    It depends on your plan. I do have a medical deductible if I use a doctor who is not part of my network. I would have to pay up to $500 myself, and THEN my insurance company kicks in after that.

    The person in this example has already met his out-of-pocket, pay-this-first portion, so the insurance will cover the remainder (or a percentage of the remainder - again, depending on the plan).


    • Join Date: Oct 2006
    • Posts: 19,434
    #6

    Re: deductible

    Ah - now it makes sense. We have the same system in our insurance schemes, but we call it "an excess" - an amount you pay before the insurance takes over.

  3. Barb_D's Avatar
    • Member Info
      • Native Language:
      • American English
      • Home Country:
      • United States
      • Current Location:
      • United States

    • Join Date: Mar 2007
    • Posts: 19,221
    #7

    Re: deductible

    Ah! Another word to add to my list of US/UK same-word-but-different list.


    • Join Date: Feb 2008
    • Posts: 269
    #8

    Re: deductible

    [quote=Barb_D;373651]No, not quite.

    Depending on your medical insurance, you may have to pay a certain amount "out of pocket" before the insurance comes in. I don't have that with my medical coverage, but I do with my dental.

    quote]


    Yes ! I understand now ! Your explanation is clearer to me than dictionaries.

    Thank you, Barb, Anglika, and BobK.

Similar Threads

  1. column about car insurance 2/2
    By HaraKiriBlade in forum Ask a Teacher
    Replies: 3
    Last Post: 03-Jun-2005, 05:21

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •