Stop loss, co-insurance, and deductible are three main factors that you need to take into careful consideration while comparing PPO and high deductible health insurance plans. Both these plans have deductibles. However, the amounts vary depending upon the type of plan that you choose. The biggest advantage of paying high deductibles is that it reduces your premium. Higher the amount that you pay as deductible, lower would be your premiums. However, there are some downsides as well, which have been described below. That is the reason why many people prefer to go for PPOs even if they have to pay slightly higher premium.
Choice Of Hospitals And Doctors
You must know what PPOs are in order to do thorough comparison between PPO and high deductible health insurance plans. PPO stands for Preferred Provider Plans, which means that you can choose from a certain network of doctors listed in the policy. The doctors in this network sign a contract with the insurance provider, as per which they have to offer their services to policyholders at discounted price. On the other hand, plans with high deductibles are usually HMOs (health maintenance organization plans), which means that you get the liberty to choose any doctor or hospital you want.
Claim Settlements
In a high deductible health insurance plan, you cannot place smaller claims. In fact, that is the very reason why insurance companies happily reduce the premiums substantially when one opts for higher amount of deductibles. The higher the deductibles are, lower are your chances of reaching a situation where you can place an insurance claim. There are many people who pay high deductibles and keep paying the medical costs out of their own pocket because their expenses never cross the deductible amount. So, high deductibles are not always a good thing. On the other hand, PPOs can be a better alternative in this regard, as they requires a low deductible and you can always file your claims no matter how small they are.
Look At Your Health
When it comes to choosing between PPOs and high deductible health insurance plans, you should first examine your health condition – look at your medical history. Are you suffering from any specific medical condition? Do you seek medical service frequently? If you enjoy good health and follow a fit lifestyle, you had better consider obtaining a policy with a high deductible. There are several advantages of doing that. You can use this opportunity to create a health savings account, which will provide you with valuable tax shelter. Besides that, when you use that money to pay for medical expenses, that amount will be considered as tax-free.
If you don’t prefer any specific doctor or hospital, it is always better to consider PPOs instead of high deductible health insurance plans. Always remember, the best insurance policy for you is the one that caters to all your specific needs. So, focus on researching your needs and decide accordingly.
