Charles Goodman Group: Experienced Bedford Insurance Brokers
Shopping for health insurance is confusing in general. It’s even more difficult when you don’t have a very large budget to work with, which is the case for many Americans. Many factors affect the cost of health insurance premiums, but the deductible is among the most notable. As you probably already know, the deductible is the portion that you must pay before your policy will start paying for services. The lower your deductible is, the more expensive your premium will be. For this very reason, high-deductible health insurance plans and their more-affordable premiums tend to be quite popular.
Before opting for a high-deductible health insurance policy, speak to an experienced Bedford insurance agent. While the main advantage of such a policy – a more affordable premium – is compelling, there are some pretty significant drawbacks to this type of coverage too. Whether or not it’s right for you and your family depends on a few factors. By understanding the basics, you can make a more informed decision about purchasing a high-deductible plan.
So, who is the ideal candidate for a high-deductible health insurance policy? It’s someone who is young, healthy and, for lack of a better term, fairly broke. Also, older, healthy people with decent savings tend to be happy with high-deductible plans too. Even if you fall into one of these categories, though, you may find that this type of coverage is more trouble – and expense – than it’s worth.
A trusted Bedford insurance agent from the Charles Goodman Group can assist you with any questions regarding health insurance or life insurance.
While you’ll enjoy lower monthly payments due to the lower premiums that go along with high-deductible health insurance plans, you’ll always be at risk of having to pay a lot of money out of your own pocket. Whatever your deductible is, you’ll have to meet it before your plan will start paying. If your deductible is $5,000, then a single trip to the E.R. could cost you that much out of pocket. Even after meeting your deductible, you’ll most likely still have to contend with co-pays and co-insurance, which is the percentage of the bill for which you are responsible. Before opting for a high-deductible plan, make sure you know what your co-pays will be and what kind of co-insurance rate you’re looking at.
If you decide to go with high-deductible coverage, you should consider pairing it with a health savings account, or HSA, or a flex spending account. Both options help you save by using pre-tax dollars to cover health-related expenses. You should also be prepared to shop around a lot for healthcare services to find the best deals possible. As long as you know what you’re going into with a high-deductible plan, you should be fine.