Make sure your plan's deductible is actually worth the reduced premium.
When it comes time to buy health insurance, the sheer number of insurance carriers and the multitude of available plan options can be overwhelming. The least expensive plans are typically those that require the largest out-of-pocket expense if and when you need treatment, and one of the largest financial outlays in these types of policies is the deductible. The deductible is a pre-determined amount of money you must pay toward your treatment costs before the plan's benefits actually kick in. Multiple deductible options are available, and you must choose yours with great care to avoid insurmountable medical bills.
Instructions
1. Examine available insurance plan choices. Contact your chosen health insurance carrier and request a benefit summary for the plans available in your location, particularly co-insurance plans with in-network deductibles. When the information arrives from the insurance company, review the benefit summaries and make note of any coverage differences or limitations between the policies.
2. Compare plan deductible options. Examine the co-insurance plans with deductibles, paying specific attention to the amount of the in-network deductibles and any differences in the other out-of-pocket costs. Ensure that plans with higher deductibles still contain the same benefit levels as plans with low or no deductibles, and verify that no additional limitations or exclusions exist on high deductible policies.
3. Compare policy premiums. Review the total cost of purchasing each of the different plans, focusing on only those products with monthly premiums that are within your realistic financial capabilities. Examine the affordable plans side-by-side to determine what differences exist, and consider whether or not the more expensive policies have features or characteristics that are worth the extra expense.
4. Consider your available financial resources. Evaluate only those plans with monthly premiums within your budget, with close attention paid to the total annual deductible. It is unwise to choose a health insurance plan with a deductible you cannot afford, or one that has an amount you cannot acquire very quickly if it were ever necessary.
5. Analyze the cost versus benefit of the deductible. Compare the features and limitations of your chosen policy to an identical plan that does not have a deductible. By dividing your deductible into equal monthly amounts and adding that figure to your chosen plan's required premium, you should arrive at an amount that is below the premium for an identical plan with no deductible. If the reverse is true, this demonstrates that your deductible plan may be improperly priced and not worth the perceived savings over a plan with no deductible.
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