Today there is a huge set of different health insurance types that it’s not even understandable to an ordinary person. And the payment options offered by these insurances often seem to be very confusing and not quite clear. However, it is you who choose the necessary medical insurance plan, and it is only you who decides which of the proposed options is most suitable. In order to make it easier to choose health insurance, you need to conduct a number of useful researches, that will help you to make the right decision.
Do not allow various circumstances influence your choice, just read this information and decide which medical insurance options suits you the best, a high or low deductible health plan.
What is deductible
Amount of money which is paid by you, before any payments done by insurance company according to your medical plan. And these amounts can vary from just a few hundreds to much bigger sums of money. Usually, when deductible health plan is higher, then insurance premium is lower. In case of outstanding deductible money, you will pay for all your expenses by yourself.
How it works
If you comply with all these required limits, which are specified in the deductible insurance plan, your company will assist you to bear the costs of medical assistance. Currently, the vast majority of insurance companies require their customers to enter coinsurance. This means your participation in the costs of health insurance on percentage points with an insurance company. If you fully comply with necessary conditions, then next time you apply to medical institutions, the insurance company will immediately pay up to 100% of the received bills. As you can see, there are also quite a few positive aspects.
At the same time, it is necessary to take into account the fact that the coinsurance plan has many different options, including higher rates and lower premiums, and vice versa, when these rates are low, the premiums are high.
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Health insurance costs
The fact that the cost of health insurance has recently had a steady tendency to increase is not a secret anymore. If we compare it with the health insurance plans that were back in the 60’s of the last century, we can see that since then the cost of medical insurance options has increased more than nine times. Today, the average cost of these services is about $ 4,500. And for a family plan insurance price has risen up to $ 8,000.
As a result, we can see that just a few people who have insurance are really using it. Thus, most of them prefer to contact only emergency services, and not to specialists and clinics.
High deductible medical insurance options
As we mentioned above, this health insurance plan has a low monthly payment due to a higher percentage of the client’s participation in medical expenses.
In order to become a member of this type of insurance, it is necessary for the policy to exceed the prevailing average prices on the health insurance market. Last year, the cost of such medical plan was approximately $ 1,300 for one person, or about $ 2,600 for the whole family.
So, how does this look in practice?
Everything is quite simple, you have quite low payments but however, in case you decide to see a doctor, you will have to pay a bigger part of the medical bill expenses. And in this case, the insurance company will save well, since you take most of your health cost treating.
Advantages of such a medical plan
The high deductible health plan has a number of advantages with one of the most important of them – very low monthly payments. Considering that at present medical insurance is compulsory for all citizens, this type of insurance is well suited for people with low personal incomes. In addition, for those people who do not have health problems, this type of insurance is a great way to save the family budget. If you don’t need to go to doctors very often, then you don’t need to worry about expensive insurance. At the same time, the basic medical coverage will still apply to you. Here you can add the absence of a penalty for the lack of any medical coverage.
Like in any health plan, there are also a few disadvantages. It must be remembered that in the case of a serious illness, the main part of the medical cost will be borne only by you. Therefore, when choosing this particular health insurance plan, you must be confident in your financial solvency.
Who can be an ideal candidate
Each of these candidates must meet the following requirements:
- have good health;
- do not have children;
- the absence of any dependents, and especially the elderly;
- adequate financial situation for emergency cases;
- lack of aggravating financial circumstances.
Low deductible health plan
This plan offers high monthly premiums with low financial involvement in paying medical expenses. Their cost can vary in different limits but on average, they are usually lower than high deductible plans by two or more times. Currently, a high deductible health plan is considered as one of the most popular and affordable.
How this works
With a low deductible health plan, monthly premiums are much higher but at the same time, it must be remembered that in case of emergency the insurance company will pay all your medical bills almost in full.
Advantages of low deductible health plan
For owners of such insurance, the main advantage contains following feather – insurance coverage will help to pay not only your own visits to the doctors or to the clinics but also, it will cover your young and older family members. This type of insurance can be especially beneficial if a member of your family has a serious chronic illness. Such a health plan helps with planning future medical care costs and it can become the best option for the future.
Perhaps, the main disadvantage of this medical insurance plan – it’s overall high cost. You will have to pay a fairly large amount every month, and many services that are present in your insurance may not be used at all! And if you do not have any serious health problems, it will only mean that you overpay this money unnecessarily.