Purchasing a high deductible health plan in the individual market, through the Affordable Care Act (Obamacare) or even choosing a policy through work, can be very complicated and confusing.
Many people have a hard time sorting through all of the different options that are available to them. Deciding which policy is best for your individual situation can give you quite a headache.
One decision that you will have to make is about your deductible. In an insurance policy, a deductible is the amount that you are responsible for paying before your coverage kicks in. For example, if a health insurance policy has a $5000 deductible, you won’t get any coverage from it until you have paid $5000 out of your own pocket.
These high deductible health plans may not seem like a great bargain since you have to pay so much before you get any benefits. However, along with a high deductible comes lower premiums. Since insurers do not have to pay as much for these policies, they do not charge premiums that are as high.
In many cases, you can see significant savings on your premiums if you choose an insurance plan that has a higher deductible. The bigger the deductible, the lower your premiums. Some high deductible health plans come with premiums that are 50 percent lower than comparable plans that have lower deductibles.
To decide whether you want a health plan with a higher deductible or not, you need to look at your personal situation. If you are relatively young and healthy and do not have much in the way of medical expenses, a high deductible plan may be the way to go. This is particularly true if you combine it with a health savings account, or HSA.
An HSA is a dedicated savings account where you can get tax breaks for saving money to pay your medical bills. Since you can save the money before taxes, it is like getting a bonus every time you put money into the account. This way, if you do experience some health issues with a high deductible, you will already have money put aside to pay your medical bills.
On the other hand, if you are older or have more health issues, you may want to choose a health plan that has a lower deductible and higher premiums. If you know that you are likely to incur medical bills on a regular basis, having the security of a low deductible may be worth the expense of having to pay higher premiums.
Figuring out the proper balance between your deductible and your premiums can be tricky. If you need further guidance, talk to an insurance agent or a health care expert. They can help you figure out which health plan is best suited to your particular situation.
One other option that can go hand-in-hand with a high deductible health plan is a discount health plan. A discount health plan offers pre-negotiated discounts on everything from doctor visits to medical procedures to prescription drugs to dramatic discounts on dental procedures – all for a small monthly fee (under $20 in many cases).
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Having good health coverage is important to protect yourself from large medical bills. By choosing a high deductible health plan, you can save money on premiums. However, consider your options carefully before you sign up for any health plan.
AmeriPlan discount health and dental plans are designed to save you money while providing the health and dental care you and your family needs. Get started now and you’ll be amazed at the level of medical and dental services and the low cost.