With a well-picked medical insurance policy, your out-of-pocket medical expenses should be at a minimum. However, a lot of insurance enrollees overlook important policy options and guidelines that end up costing them more money. If you struggle to make ends meet because your medical costs are too high despite insurance, it may be time for a bit of guidance. Here on our blog, we cover the bases to help people just like you get the most from their medical insurance policy. We discuss things like finding the most affordable in-network providers, keeping co-pay costs as low as possible, and how to save on prescriptions.
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Medical Insurance Tips to Get the Most from Your Policy
Everything You Need To Know About High Deductible Medical Coverage Insurance
June Robertson
In recent years, high deductible medical coverage insurance has become an increasingly popular option for patients. This type of insurance typically has lower monthly premiums than traditional health insurance but also comes with a higher deductible. Here are three key differences between high deductible medical coverage insurance (HDHP) and traditional health insurance and one bonus you get with an HDHP that you should be aware of before making a decision
1. Cost Sharing
One of the biggest differences between high deductible medical coverage insurance and traditional health insurance is how cost sharing works. With traditional health insurance, your insurer generally pays a set percentage of your covered medical expenses, leaving you responsible for the rest. However, with high-deductible medical coverage insurance, you are responsible for paying your entire deductible before your coverage kicks in. In other words, you could be responsible for thousands of dollars in out-of-pocket expenses before your medical coverage insurance even kicks in, even if you have a serious illness or injury.
2. Coverage Limits
Another key difference between these two types of insurance is that high deductible medical coverage typically has lower annual coverage limits than traditional health insurance. This means you could max out your policy and pay thousands of dollars out-of-pocket. So, carefully review the coverage limits on any high-deductible medical coverage plan before enrolling.
3. Provider Networks
Finally, it's important to be aware that high-deductible medical coverage plans often have narrower provider networks than traditional health insurance plans. You may not be able to see your preferred doctor or receive care at your preferred hospital. Check the provider network for any high-deductible medical coverage plan before enrolling.
The Bonus
An HDHP may not have as many benefits as a traditional medical coverage insurance plan, but they do have a bonus that you cannot access with a traditional plan: a Health Savings Account (HSA). With an HDHP you have this special savings account and can put thousands of dollars away for medical expenses with pre-tax dollars each year. If you don't use it, the money rolls over each year, allowing all that tax-free money to accumulate. Some experts even recommend using an HSA as another tax-deferred retirement vehicle.
High-deductible medical coverage plans can be a great option for patients looking to save on monthly premiums. Be sure to carefully compare the costs and benefits of high-deductible medical coverage insurance plans with traditional health insurance plans before making a decision.
Contact a local medical coverage insurance service to learn more.
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