Health insurance is becoming necessary around the world, which means some people have to purchase insurance for the very first time in some instances. Not everyone needs the same level of insurance as others do, which is why some people may consider the purchase of a high deductible health plan. These health plans often cover many minor issues with small co-pays, but with major issues, such as a surgery, much of the cost would have to be paid by the patient. In return, these plans often have a lower cost.
Here are some other things to consider about a high deductible health plan:
Additional Pros of Carrying a High Deductible
If you are in reasonably good health and just see the doctor for routine health issues, like a sinus infection or a sore throat, then you can get the care you need at an affordable price. A doctor’s visit often has low co-pay in high deductible plans and then you would take care of any lab work through the deductible. If you anticipate lower health costs over the course of a year, these plans can save you a lot of money.
High deductible plans also allow you to meet health plan stipulations that your community may have. By having yourself and your family covered with health insurance, you can be in compliance with specific laws that require insurance coverage.
For those that are self-employed, high deductible plans allow people to purchase health insurance even though they don’t have the influence of a group negotiation rate. This helps people have a modicum of protection while working that they normally wouldn’t have otherwise because they work for themselves and not for an employer.
Are There Cons To a High Deductible Health Plan?
The primary issue with a high deductible plan is the costs that you would pay if you had a medical emergency. Ambulance services, emergency room procedures, and high end diagnostic tools would all go toward the deductible and not be covered by the plan. That could mean, for example, an emergency CT scan could cost upwards of $5,000, whereas a low deductible plan may cost less than 10% of that cost.
High deductible health plans are not always honored by local providers either. This is especially a problem for people in smaller communities with hospitals or clinics that have limited resources. You may find that initial care could be refused or that full prices may be required because your plan is not recognized by the healthcare institution.
Is Carrying a High Deductible Plan Right For You?
If you don’t anticipate a medical emergency in the coming year, then a high deductible health plan could save you money. Many people, however, are simply unwilling to gamble and will invest into a plan that offers a lower deductible for a higher monthly premium. No matter what, however, a high deductible plan will give you the coverage you need that will meet your needs, often for the right price.