Choosing between a low or high-deductible health insurance plan is a matter that deserves much thought and consideration. Low-deductible plans certainly have their benefits, but as with just about everything else in life, these plans come with both pros and cons. So, is it better to have a low deductible? How can I avoid paying my health insurance deductible? These are common questions that we are going to attempt to answer here by looking at who would benefit from low-deductible health insurance plans and those would benefit from paying a high deductible.
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Is a Low-Deductible Better than a High Deductible?
High-deductible health insurance plans might seem unfavorable because policyholders pay more out of pocket for their healthcare costs up-front. In fact, high-deductible plans were created to encourage individuals to shop around for their health care. The idea is that if you are responsible for your own medical costs up-front, you will naturally be more cautious and proactive in finding lower-cost providers, thereby lowering costs for yourself and your insurer. Again like almost everything else in life, there are other factors involved, and this idea hasn't panned out in most instances.
People who own high-deductible health insurance plans reduce costs, but they usually do so at another cost - by skipping out on their healthcare! The reason that low-deductible health insurance plans are more favorable to most people is that they typically offer broader coverage and more predictable costs. The down shot is that low-deductible health insurance plans equal higher monthly premiums, so it can be hard to fit into a monthly budget.
Educate Yourself About High and Low-Deductible Health Insurance Plans
The good news is that, if you are informed, you don't have to sacrifice your health. Let's consider a few factors to help gauge whether a high or low-deductible plan would be best for you.
People who would benefit from a high-deductible health insurance plan should note:
- While it is true that high-deductible health insurance plans come with greater out of pocket costs, some consumers will save money with these plans.
- If you are healthy and rarely get sick or injured, then a high-deductible plan is probably best for you.
- If you are confident that you can afford to pay your deductible in-full either immediately or no later than 30 days after receiving a bill for the amount in an unexpected medical expense, then high-deductible might work.
- If you are in good health and want to invest or save money in an HSA, high-deductible plans are advised.
Low-deductible health insurance plans might be best for you if the following apply:
- You are a woman who is pregnant, has small children, or is planning to become pregnant.
- Your health is not the best, and you undergo routine doctor visits.
- Reparative surgery is something you are planning for.
- You take multiple prescription medications or just one or two very expensive prescription drugs.
- Your career or hobby involves something that puts you at an elevated risk of injury.
Low Deductible Health Insurance Plans