Large deductible medical insurance plans are often greater values when judged next to to no or small deductible health insurance policies. This is not because lower deductible plans have lower benefits, but because the additional premium for the better benefits is too high.
You might find that when comparing a medical care insurance plan with a lesser deductible with a policy that has a moderate or large deductible, you will find that there is no scenario where the smaller deductible is the winner. If you have no expenses the plan with the lower price is going to be better for you. If you have medium or large expenses, the policy with the lower price tag can still be better if the price is small enough. In many scenarios, the policy with lower monthly cost will offer the best value even in a scenario with catastrophic expenses.
In a world where it is more logical to buy a entire pizza at once when compared to buying an equivalent amount of pizza by the slice, it can be hard to accept that the less expensive insurance contract is the better contract. This causes a lot of policyholders to pay too much for health insurance.
Finding the right medical care insurance contract requires that you do a little research. Going with a gut feeling instead of using a calculator, will result in your selecting the wrong plan more often than not.
To see whether the large deductible version of a contract is better for you than the lower deductible version you should compare the policies in three different situations. The first scenario should be one where your family only needs only preventative care for a year. The second situation should involve medium expenses. The third scenario should involve catastrophic expenses.
Once you have come up with the scenarios, you should figure out what your combined outlay would be with each policy. Include the costs of the monthly premiums and the costs of the copays, coinsurance and deductibles you would have to pay. When you sum these costs, you might be surprised at how well the big deductible policy does.
If you can take the funds that you save by buying a bigger deductible contract and put it in the bank, you will probably have the funds to pay your deductible if you ever do have a big medical expense.
If you buy a plan that is health savings account compatible, you can put the cash away on a tax-deferred basis. health savings accounts are the best type of contract for most consumers.
Contracts with small deductibles are attractive to a lot of smart people because they have never done the math to show which type of policy is better. Now that you have a system for evaluating medical care insurance plans, you have a tool that will help keep you from spending too much on medical care.
Policies with medium and high deductibles tend to have lower rates. Often the rates are low enough to more than make up for the fact that they cover less of the small stuff. When you are comparing contracts, do the math so that you will know if a larger deductible healthcare insurance policy is best for you.
