One of the key cost-related factors in choosing a health insurance policy is the deductible. This pre-determined amount is usually paid to the policy holder annually before the policy’s benefits are initiated for coverage.
While a higher deductible will help reduce premium payments, in some circumstances it may mean that you – the insured – could end up paying more in out-of-pocket expenses.
With this in mind, there are several factors that should be taken into consideration prior to determining the best plan for you.
The first thing to consider is available financial resources. In many cases, even though the policy premium may be well within your budget, the deductible amount could be out of your ballpark. Especially if the funds you rely on to pay the deductible are not readily accessible.
Having considered this, you should then tackle a cost-versus-benefit comparison. In particular, you need to take a close look at the features and benefits of plans offering identical benefits with varying deductibles.
This kind of analysis will give you a clear idea of the total estimated annual costs for each of the plans you are looking at. Then factor in other criteria that could impact overall coverage, such as co-insurance payments and the price differential between care received from in-network versus out-of-network providers.
You may that find your careful analysis indicates that a policy with a higher premium may actually be more affordable when you factor in a lower deductible amount.