High Deductible Health Insurance Plans

High deductible health insurance plans, called HDHPs for short, are a type of health insurance with lower premiums, but with higher deductibles. It’s basically a form of insurance against catastrophic accidents or illnesses. Buying a high deductible health insurance plan can keep your monthly premiums low, but the plan may not be suitable for those that get sick often or those who cannot afford to pay out of pocket for basic doctor visits. High deductible health insurance plans are best for people who can afford to pay out of pocket for minor things, but don’t want to pay for major surgeries, illnesses, or accidents. Normally with a high deductible health plan, you’ll have to pay 100% out of pocket for most regular visits to the doctor – for minor things like checkups, physicals and common sicknesses, but you won’t have to pay out of pocket for major treatments and surgeries. Most high deducible health insurance plans require patients to pay out of pocket up to a certain amount each year, before the coverage begins to kick-in. Some plans may require patients to pay the first $2,000 before coverage even begins, but after the $2,000 mark the health plan will cover 100% of the costs. So if you ever need some sort of expensive surgery that costs, lets say $25,000, you’ll only need to pay $2,000 out of pocket and the rest will be covered by your insurance. The $2,000 number in the example about is just an example. There are many different plans out there and the deductible varies by plan. The higher the deductible though, the lower the monthly premium. If you ever develop a serious illness in the future, your high deductible health insurance plan will have you covered.

Why a High Deductible Health Insurance Plan

So why a high deductible health plan over a regular individual plan with a lower deductible? Simple. The higher the deductible, the lower your monthly payments are. A health plan that covers 100% of medical expenses can cost $500+ a month, but a plan that covers 100% of medical expenses AFTER the first $1,000 can cost a fraction of the amount. This means that people who can afford to pay out of pocket for minor health expenses, and are relatively healthy, should get a high-deductible plan. The lower monthly fee means more money at the end of the month in your pocket. Make no mistake, a high deductible insurance plan are a valid form of health insurance. They just aren’t that popular because people foolishly believe that whichever plan has the lowest deductible is the best. This is certainly not the case for everyone though, as many people who can afford to pay for minor health issues should purchase high deductible health insurance, as it could actually them them money in the future. Unfortunately, with the passage of Obamacare, low monthly cost high deductible plans cost a bit more, as a lot of younger people have signed up for them. My personal bill used to be $40/mo, but is now $150/mo with a $6,500 deductible.

Types of High Deductible Health Insurance Plans

There are literally hundreds of health plans out there and you’ll need to choose one that best fits your needs. The rule of thumb for all high deductible health plans is simple. The more you have to pay out of pocket before the insurance begins to kick in, the lower the monthly cost. Also keep in mind, some health insurance plans require patients to pay a percentage of the full cost, even after the deductible. So insurance that kicks in after $1,000 may not be too helpful if it requires the patient to pay 10% of the costs. Even though the insurance company is paying 90%, 10% of a catastrophic surgery can be thousands of dollars. Treating certain diseases regularly can be very expensive too, so those looking into high deductible plans should look for plans where the insurance company pays 100% of the costs after the deductible. Keep in mind, when the insurance company is required to pay 100% of the health care costs, insurance premiums will be higher. If you’re looking to learn more about high deductible health insurance plans, just look around this site! We’re the #1 resource for finding out and buying high deductible plans.