What's it going to cost me?
Of course, one shouldn't buy a health insurance plan on price alone. What most of us try to do is balance what we can afford to pay with what we want in the way of coverage. We'd all like the "best" but, the health plan's price tag needs to be within our budget.
Health Insurance Premiums - Why so high?
The premium is quite simply the the monthly bill you pay to keep your coverage in effect. Why are the premiums for some health insurance plans higher than for other health plans? Health insurance premiums depend on several factors. The factors are all related to your risk of needing expensive health care. These factors include your current health status, your age, your lifestyle, even where you live. The process of deciding how much risk you have -- and pricing your premiums to match that risk -- is called medical underwriting. It's important to remember that each company has a different set of rules they use for underwriting. What one company considers high-risk might only be a moderate risk for another company. That can mean a big difference in your premium. So it pays to compare options from several companies.
Health Plan Deductibles - How they affect rates.
A deductible is the fixed amount of medical costs you are responsible for paying before your insurance coverage starts picking up the bill. For example, if the total bill for a simple surgery were $5,000, you might have to pay the first $500 before your insurance company pays the remaining $4,500. Deductibles can range from a few hundred dollars to several thousand. Many health plans offer a choice of deductibles. You're only responsible for the deductible when you receive care. When you're looking at plans, pay attention to the medical services that are covered without having to pay toward your deductible. Many health insurance plans will cover routine and preventive care, and only require you to make a small copayment. This care can include doctor's visits, lab work, and other basic care that keeps you healthy.
How Premiums and Deductibles are Related
At first, health care shoppers will request a low-deductible plan. Then they see that the premium for such a plan is too expensive. A plan with a higher deductible will have lower premiums. So, many people choose plans with high deductibles in order to keep the monthly cost of coverage affordable. In fact, with the skyrocketing cost increases
in health insurance premiums over the past 10 years, high-deductible health insurance plans have become the norm for people who insure themselves.
Health Savings Accounts
If you do choose a plan with a high deductible, you should consider putting aside some savings to cover a major medical expense, up to the amount of your deductible. Health Savings Accounts (HSA) are an excellent vehicle for this purpose. HSAs allow you to save money tax-deferred and help pay for health care expenses -- including your deductible.
Want to find out more?
We have a wealth of healthcare information for you throughout our site. We also make it easy for you to get a free online quote and compare plans from the best insurance companies. Our rates are the same as if you were to purchase your health plan directly from the insurance company, because premiums are regulated at the state level. Find the coverage you need -- and can afford.
