High deductible health plans have been around for a while, but they’ve been gaining in popularity in recent years. In fact, about 1 in 3 American workers now have a high deductible health plan, according to the Kaiser Family Foundation. There are a few reasons for this increase in popularity. One is that deductibles have been rising faster than inflation and wages. In other words, health care costs have been increasing faster than our ability to pay for them. Another reason is that employers are increasingly shifting the burden of health care costs onto employees. Employers are doing this by offering high deductible plans as the only option or by requiring employees to pay a larger share of premiums. So, what does all this mean for you? Should you get a high deductible health plan?
What is a high deductible health insurance plan?
A high deductible health insurance plan is a type of health insurance with a higher than average deductible. This means that the policyholder will have to pay more out-of-pocket before the insurance company starts to pay for covered medical expenses.
There are pros and cons to having a high deductible health insurance plan. On the plus side, these plans tend to be less expensive than low deductible plans. They also give policyholders more control over their healthcare spending. On the downside, high deductibles can be a financial burden if you have unexpected medical bills.
If you’re considering a high deductible health insurance plan, it’s important to compare different options and make sure you understand the terms of your policy. You should also make sure you have enough savings to cover your deductible in case of an emergency.
How does it work?
For many people, the thought of having to pay a high deductible health insurance premium is enough to make them cringe. However, there are some advantages to having this type of coverage.
The main advantage of high deductible health insurance is that it can save you money on your monthly premiums. This is because the higher your deductible, the lower your monthly payments will be. In addition, if you ever need to use your insurance, you will only have to pay the deductible amount before your coverage kicks in.
Another advantage of high deductible health insurance is that it gives you more control over your healthcare spending. With a lower monthly premium, you may be able to afford to pay for routine medical care out-of-pocket. This means that you can avoid paying for unnecessary tests and procedures that would raise your deductibles.
Of course, there are some disadvantages to high deductible health insurance as well. The most obvious disadvantage is that you will have to pay more out-of-pocket costs if you need to use your coverage. In addition, if you have a major health problem, you may find yourself quickly reaching your maximum out-of-pocket limit.
Before decide if high deductible health insurance is right for you, be sure to consider all of the pros and cons carefully.
Pros and cons of high deductible health insurance plans
There are pros and cons to high deductible health insurance plans. The main pro is that these plans can save you money on your monthly premiums. The main con is that you will have to pay more out of pocket when you need medical care.
Here are some more specific pros and cons of high deductible health insurance plans:
Pros:
-You can save money on your monthly premiums.
-Your out of pocket costs will be lower if you stay healthy and don’t need to use your insurance much.
-High deductible health insurance plans can encourage people to be more mindful of their health and make healthier choices.
-These plans can give you peace of mind in knowing that you are covered in case of a major illness or injury.
Cons:
-You will have to pay more out of pocket when you do need to use your insurance, which can be a financial burden if you are not prepared for it.
-If you have a chronic illness or require regular medical care, a high deductible health insurance plan may not be the best option for you.
What are some alternatives to high deductible health insurance plans?
There are a few alternatives to high deductible health insurance plans. One option is a traditional health insurance plan with a lower deductible. Another option is a health savings account (HSA) coupled with a high-deductible health insurance plan. With an HSA, you can save money tax-free to use for qualifying medical expenses.
Conclusion
After reading this article, you should have a better understanding of how to decide whether high deductible insurance or high premium insurance is right for you. If you are healthy and don’t mind paying more out-of-pocket if you need medical care, then high deductible insurance might be the way to go. However, if you want the peace of mind that comes with having low deductibles and premiums, then high premium insurance might be the better choice. Ultimately, the decision comes down to what makes the most financial sense for you and your family.
