Health insurance: Low Deductible or High Deductible

gmarie21 · #1 Apr 27, '08, 3:02 am

For a family of three fairly healthy people (one check up per year and maybe one or two sick visits per year with possibly one to five total prescriptions per year and of course two dental visits per person per year) which do you think is better and why? A high premium, low deductible plan or a low premium, high deductible plan with a Health Savings Account?

whiteyacht · #2 Apr 27, '08, 10:46 am

If you have no chronic health issues, a HDHP with HSA could be a good option for you. HSAs/HRAs are especially nice if your employer pays the first part or matches your contributions.

If you're purchasing insurance on your own, though, you might consider a less comprehensive plan (hospital only, maybe with a dental rider). That covers you for emergencies, and if you're only seeing the doctor once or twice a year, the office visit charge is not too much of a burden. This is what I did when I was single and working at a job with no benefits. I wouldn't recommend it for anyone with kids, though.

Disclaimer: I'm not a professional by any means! Just someone with a little bit of experience in these things.

**buffalo** · #3 Apr 27, '08, 11:04 am

Take the highest practical deductible and bank the rest. If you need it it will be there. If you don't it's yours.

**whatevergirl** · #4 Apr 27, '08, 12:44 pm

[quote=whiteyacht;3611760]If you have no chronic health issues, a HDHP with HSA could be a good option for you. HSAs/HRAs are especially nice if your employer pays the first part or matches your contributions.

QUOTE]

I have mine set up like this....I am in the biz, and this is great advice.

**1ke** · #5 Apr 27, '08, 3:18 pm

This book is very informative. I'd suggest getting a copy and reading it before deciding.

Al Masetti · #6 Apr 28, '08, 10:16 am

I called an insurance company that sells HSA's or MSA's. By law they couldn't sell me a policy here in New Jersey. But they put me in touch with a local insurance broker and he was great. Knew all the local laws and was able to fix us up with a good policy.

So call around and see if you can get the name of a local insurance broker and spend some time with him or her. They probably have the best knowledge of what's legally available for you. It's a terrible thing when our state and Federal governments put artificial restrictions and limitations on our ability to purchase insurance products that the insurance industry is willing to provide for us.

Danniela · #7 Dec 23, '08, 10:50 pm

It's often helpful to ask some agents or go directly in a health insurance office. Anyway, I"ve gone over this site. I think they have details featured there that can help.

shamsuthbegum · #8 Dec 17, '09, 11:26 pm

hi.....
Thanks for your posting......
Can you explain about Park model Insurance.
What is the premium for a typical Park Model mfg home?
..................

Quote:

Originally Posted by whiteyacht

If you have no chronic health issues, a HDHP with HSA could be a good option for you. HSAs/HRAs are especially nice if your employer pays the first part or matches your contributions.

If you're purchasing insurance on your own, though, you might consider a less comprehensive plan (hospital only, maybe with a dental rider). That covers you for emergencies, and if you're only seeing the doctor once or twice a year, the office visit charge is not too much of a burden. This is what I did when I was single and working at a job with no benefits. I wouldn't recommend it for anyone with kids, though.

Disclaimer: I'm not a professional by any means! Just someone with a little bit of experience in these things.

**puzzleannie** · #9 Dec 18, '09, 3:56 am

Quote:

Originally Posted by gmarie21

For a family of three fairly healthy people (one check up per year and maybe one or two sick visits per year with possibly one to five total prescriptions per year and of course two dental visits per person per year) which do you think is better and why? A high premium, low deductible plan or a low premium, high deductible plan with a Health Savings Account?

do the math

review all the plans your employer has to choose from and choose the one that best meets your needs, and don't forget the flexible spending account that might cover deductibles, co-pays, screening tests etc.

for healthy people with enough emergency savings to cover it, a high deductible is probably best, but what is the difference in the out of pocket costs for you in premiums and co-pays vs. the deductible? If one major illness or accident will be enough to wipe out your savings to cover the deductible, think again.

shamsuthbegum · #10 Dec 19, '09, 12:08 am

hi to all.....
Thanks for your posting.
Can anyone explain Boncaster Insurance
I Have Insurance With Boncaster On My 3 Door Cosworth I Phoned Up Today To Add A Rover 213 Worth 150 Quid I Told Them Its Just For Winter Use And I Want Cosworth Off Road.. Guess Wot They Said After Lots Off Questions To Young Cause Im Under 25 But Couldnt Get It Threw To Them Why Cause Im Insured Threw Them On A Group 20 Car Just Dont Get It?????
....................

**puzzleannie** · #11 Dec 19, '09, 6:17 pm

sorry I don't understand your question. call your insurance agent and ask for an explanation of the policy and comparisons with other companies

I think OP is asking about health insurance. If you want car or mobile home insurance do to a broker that handles several companies and ask for comparison quotes

EvelynEVF · #12 Dec 24, '09, 11:37 am

One thing to keep in mind is that the deductible is different from your out of pocket maximum. If you have a high deductible and then 80/20 coinsurance until you hit $5000, that's another $1000 OOP on top of the deductible.

I have an individual plan with a high deductible, and when I bought it, I was able to look on the website and compare premiums, deductibles, OOP limits in and out of network, etc. If you travel a lot, you may want a national company that will cover you in-network even if you are far from home.

I rarely go to the doctor, so I picked the highest OOP limit that my savings can handle, which ended up being a high deductible plan with no coinsurance, so after I pay my deductible, ins kicks in 100%.

jc-servant · #13 Dec 24, '09, 6:40 pm

Another consideration may be what will happen if someone in the family does develop a chronic illness? Will you be stuck on the high deductible plan because you are now excluded from other plans by a pre-existing condition? If something like diabetes or heart disease runs in the family, then that may raise concerns as you age. It sounds great to say high deductible and bank the savings, but remember that if you have to tap your savings due to an emergency the high deductible could make your health insurance plan basically worthless to you. Are both adults working so that you will have a back up income in case of job loss in this slumping economy? Just something to consider, I don't really need to know the answer.