Health Insurance

Does my deductible start over if I change jobs?

Health insurance deductibles don’t transfer from plan to plan – and they start over if you change jobs. Read on to understand how deductibles work when you lose your health insurance.

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Updated on: May 26, 2023

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If you change health insurance plans — for instance, from group to individual — or health insurance companies during the calendar year, you don’t get credit for the money you put toward the deductible of your previous policy.

For example, if you’ve already met your current health insurance provider’s $1,000 deductible, medical expenses after should be covered by your health plan, minus any copayments or co-insurance you’re required to pay.

However, if you lose your job and start a new job — whose health plan you enroll in once you’re eligible — you’ll have to start over to meet your new deductible. Thus, if the new deductible is also $1,000, the previous $1,000 you spent doesn’t apply – you have to start all over again at $0.

Does my deductible carry over to new insurance?

If you cancel your current health insurance policy and purchase a new one, the deductible does not carry over to the new insurance company.

Instead, you will be responsible for meeting the new policy’s deductible before your insurance provider starts paying for your medical bills.

When does the insurance deductible reset?

The health insurance deductible resets at the beginning of each year. You will need to pay the deductible again for the renewed insurance policy before your insurer begins to pay for the medical care.

For example, if your deductible is $500, you will need to pay the first $500 of any covered medical expenses yourself. Once you have met your deductible, the insurance company will start to pay for the remaining bills. But if your health insurance includes copays for office visits and prescriptions, you will start receiving those benefits right away, even if you haven’t yet paid your deductible.

Can you change your health insurance deductible mid-year?

No. You can’t change your plan until the next open enrollment period if you have health insurance through your employer.

However, there are a few instances where you may be able to change your health insurance deductible mid-year. This is quite rare and usually happens if you experience a qualifying life event, such as getting married, having a baby, losing your job or moving to another ZIP code.

Frequently asked questions: Health insurance deductibles

Do deductibles reset every year?

Your health insurance deductibles reset every calendar year. Insurance companies require that you meet a deductible before they start paying for your healthcare.

Are health insurance deductibles transferable?

Health insurance deductibles aren’t transferable between health insurance plans. This means that if you switch health plans, you will have to pay a new deductible.

Shivani Gite

Contributing Writer

Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions.