High Deductible Health Plans: Pros and Cons

• Premiums are typically lower than with POS or PPO plans.
• Networks are not necessarily narrowed, as with HMOs.
• People who rarely use their health benefits may save money.
• If you are not on expensive medications, your monthly bills may be lower.

Why would a family choose a high deductible health care insurance plan?

How High Deductible Health Plans and Health Savings Accounts can reduce your costs. If you enroll in an HDHP, you may pay a lower monthly premium but have a higher deductible (meaning you pay for more of your health care items and services before the insurance plan pays).

Why high deductible health plans are good?

The pros of high deductible health plans HDHPs provide 100% coverage for preventive, in-network services before you satisfy your deductible. If you’re relatively healthy and generally don’t have medical expenses beyond annual physicals and screenings, there’s a good chance you’ll save money by opting for an HDHP.

Are there other health plans with high deductibles?

Other health plans – that also have high deductibles – sometimes have lower premiums and also pay for non-preventive care before the deductible is met, which HDHPs cannot do. [All health plans – including HDHPs – cover preventive care before the deductible is met.

Which is better a high deductible or PPO plan?

To determine which health insurance plan might be better for you, I suggest you compare your expected annual health care costs to the amount you save on your premiums and receive as a company contribution to your HSA. Let me explain. In return for a higher deductible, a high deductible health plan will charge lower premiums than PPO plans.

What happens when you meet your deductible with HDHP?

Reimbursements for qualified expenses made from the account are also not taxed. It may seem like paying “full price” until you meet your deductible isn’t saving you anything out of pocket. However, with a HDHP the insurance company negotiates reduced payment rates with medical providers.

Is there a health insurance plan for retirees?

Health coverage for retirees. If you’re retired and need health coverage, you can use the Marketplace to buy an insurance plan. If you have retiree health coverage, you have different choices to consider.