​Choosing a High or Low Deductible

Every year, everyone has to update their health insurance. It is inevitable and many people dread having to decide which plan they should go with for the following year. There are so many variables, and cost is one of those variables. The cost of the health insurance plan can vary depending on the size of the deductible. 
 
Because the insured will be responsible for a larger amount of their initial care at the beginning, a high deductible plan will have a lower premium each month. The deductible can range from $1,000 or more depending on the size of the insured’s family. The money paid out for the deductible will end as soon as the limit is reached for the plan. 
 
If the insured decides on a high deductible plan, they maybe be eligible for a Health Savings Account. This account allows the insured to set aside a certain amount of pre-tax dollars for medical expenses. Sometimes an employer will also contribute to an employee’s Health Savings Account. 
 
A low deductible plan means that the insured will pay less for medical care when they visit a doctor, but their premiums will be much higher every month. Most of the time with a low deductible plan, the insured is paying a co-pay for each visit to the doctor and these co-pays will need to be paid throughout the year. 
 
It is usually best to estimate the medical costs for the following year before signing up for a plan. A person should make a list of all of the routine and necessary appointments plus prescriptions and then add on a few extras just in case. Next, add up all of the expenses including the premium for a high deductible plan and then for the low deductible plan and compare them. A low deductible plan has the potential to cost twice as much per month than a high deductible plan, depending on how often the medical insurance is used. 
 
A high deductible plan is usually best for people who are healthy and do not have children.  Low deductible plans are always best for people with chronic medical issues and children. 
 
Health insurance is necessary and it is not something that can be ignored. Every person needs to look at the information carefully and make the best decision for themselves and their family.  

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