Should You Get A High Deductible Health Plan?
The deductible is the amount of your medical bills you have to pay before your insurance
kicks in and picks up the rest. So the lower the deductible the better, right?
Maybe not. Having a plan with a high deductible has some advantages.
Yes, you'll have to pay more when you visit the hospital. But you’ll save money every
month on your premiums. And a high deductible plan can qualify you to participate in a Health
Savings Account, which can save you even more money.
Lower Your Premiums
Having health insurance is all about having peace-of-mind. When your health is protected,
you know that you’ll be able to see a doctor or go to a hospital whenever you need to — and
it won't cost a fortune.
But that peace-of-mind can take a big chunk out of your monthly budget. One way to take
the sting out of those monthly premiums is to get a higher deductible.
If you do have to go to the hospital, you will pay more if you have a high deductible.
But put it in perspective: a single day in the hospital can cost over $7,000. When
you look at a number like that, the difference between having a $500 deductible and a $1,100
deductible doesn’t seem quite as bad. Many people think of their high deductible plan
as “emergency coverage”. They may have to pay more if they are injured or sick,
but they’ll still save big time compared to being uninsured.
Plus, there are many policies available where the deductible is waived for routine
and preventive care. That means visits to the doctor are covered, even if you haven't
met the deductible. Some plans even waive the deductible for limited amounts of prescription
drug coverage.
High Deductible Plans Qualify You For Savings
If you get a high deductible health plan, you may also qualify for a Health
Savings Account,
or HSA. There's been a lot of talk about HSAs, but many people still
don’t know exactly
what they are.
HSAs aren’t health plans. They are a way to save money for your health expenses.
You — and your employer — make contributions to the HSA. The money in the account
draws interest, or can even be invested like retirement account savings.
When you have to pay for medical expenses, you can withdraw money from the HSA without having
to pay any taxes. And you’ll save money each month, because the premiums on high deductible
health plans are usually much lower than the premiums on traditional insurance policies.
High deductible policies aren’t for everyone. For professional advice about choosing
the right health plan, talk an insurance agent.
You can use our free service to get quotes now. We’ll match you with agents in your
area, and you can see for yourself who has the best plan for you.
