Why Should You Choose a High Deductible Health Plan?

July 3, 2020 10:18 newlambertagency

For a growing number of Americans, it has become crucial to choose a deductible health plan. The trend started a decade ago and shows no signs of disappearing. At many firms, it’s the sole health insurance that’s offered for employees.

However, there are still a considerable amount of people who find themselves without employer-offered insurance benefits. Be it a student who’s in between jobs or self-employed individuals, people are needed to re-evaluate their Texas health insurance plans.

Thus, in such a case, one option to consider that will favour your budget is a high deductible health plan. A High-Deductible Health Plan (HDHP) is a health insurance plan with low premiums and high deductibles, compared to traditional health plans.

How does an HDHP work?

An HDHP involves the participant assuming all expenses until a deductible amount has been met. Any expenses that are greater than the deductible will be covered as part of the health plan. The insurer covers all medical expenses after the deductible has been met in full.

It can pay much lower monthly payments for medical coverage, with premiums being more reasonable it is possible to save money for the future in case a high deductible arises. Also, monthly medical costs decrease substantially with an HDHP.

HDHPs also offer some unique ideal for young people as they do not often deal with major illnesses. Health coverage is something they have just in case something happens unexpectedly. When the probability of a medical expense is low, an HDHP offers adequate coverage with lower costs in the long run.

People with HDHPs can also contribute to a Texas health savings account, which is a health savings account that allows you to contribute and withdraw money for qualified medical expenses without being taxed. So, if you combine your HDHP with an HSA, you can pay that deductible, plus other qualified medical expenses, using the money you set aside in your tax-free HSA.

The insurance benefits of an HDHP also give you some peace of mind as it covers for any catastrophic event and at the same time helps you save between 30 and 60% on medical costs.

You must consider the following when choosing a health plan that suits you:

  1. If you’re healthy and usually go to the doctor once a year, a lower monthly premium may be a good choice for you.
  2. If a chronic health condition means that you go often to your primary care provider (PCP) or specialists during the plan year, you must decide if savings from low premiums are greater than the cost of regular care or medication.

Carefully analyzing the ins and outs of high-deductible health insurance may help you find the coverage that’s right for you. In addition to saving you money, finding the right plan for you can help ensure that you’ll receive coverage for the health care you need when you need it.