Whose Benefit?

The medical benefit plan I have requires payment of a certain sum before it begins paying a high percentage of the cost of prescriptions. This sum is called the deductible; it’s a sum uncovered by the insurance, deducted from the total expenses before consideration of payment. The policy term is one year, so the value resets every year.

The other day I had to purchase a prescribed drug. The pharmacy had a simple question for me: Did I want them to bill through the insurance company, or did I want to pay cash? If they billed through the insurance company, then the cost of the prescription would be applied to the deductible amount. If I paid cash, then the insurance company, not knowing of the cost, would not apply it to the deductible. One supposes that there’s a third option: to pay cash and then report the expense to the insurer.

This question came up because of a difference in the prices between the two methods: $300 more to bill the expense through the insurance company.

No, thank you. I’ll pay cash.