High deductible health insurance plans for family provide major medical coverage at a lesser cost as compared to other health plans. That’s the reason such plans are fast becoming popular in the United States, as it helps save money on insurance. If you do not wish to spend much on buying a health insurance, yet want coverage for severe diseases or injuries, high deductible plan is the one for you.
Such a plan is specially designed to save the policy buyer from incurring high medical costs, especially if the person is healthy. It also motivates people to go for preventative health care.
How This Plan Works?
- The first step involves picking a high deductible amount that falls between $500 and $10,000. The range depends on the insurance company chosen.
- The second step involves reaching an agreement with the insurance company about the heath plan selected. Now, the policyholder has to pay for the medical costs up to the limit of deductible amount.
- After the deductible amount is met, it’s the turn of the insurance company to incur complete medical cost of its client until the policy expires.
A high deductible health insurance plan can bring down your monthly payments considerably, sometimes upto 50 percent! The good news is that most of the insurance companies have gone online with their health plans. Therefore, it has become easier to shop for a suitable plan from any corner of the world and at any time. You can search and compare quotes before making your final decision.
One drawback of high deductible health insurance plan is that you need to assume certain risks for medical costs. Say, you’ve chosen a $1500 deductible plan. You’d have to pay $1500 before your insurance cover begins. Many companies offering such plans pay 100 percent cost once you meet the deductible. This means, $1500 is the maximum amount you have to shell out in case a serious health condition befalls on you.
High Deductible Plan For Employees
High deductible health insurance is a smart and inexpensive alternative for employers who cannot afford coverage for this staff. These plans include setting up of savings accounts that are non-taxable. It enables the employer as well as employees to contribute money to it. Whatever money is left after paying the deductible for the plan is used next year. There are examples of businesses that managed to collect such a huge amount in the account that they could cover deductible cost, medical prescriptions, and other medical supplies through the money. Besides this, the savings account offer good financial support to employees until the insurance company starts paying for serious medical conditions.
High deductible health insurance plan has become popular among small businesses, non-profit organizations, and self-employed people due to its inexpensive nature. This is a good way to take care of your employees’ as well as family’s health. The one feature that attracts many people towards this plan is the 100 percent coverage provided by the company once the deductible is met.
Although it may not be the best plan for people with chronic illness or those who need to visit the doctor often, for those with good health it’s the ultimate insurance policy. Also, if you think any of your family members or employees has the risk of getting some serious illness later, you can go for this plan. Pay the deductible now and get 100 percent medical expenses paid by the company later!