What to Know About High-Deductible Plans

Do you frequently need to go to the doctor, or is it a pretty rare occurrence? Maybe you’ve been lucky and haven’t had many health issues. 

If this is the case, a high-deductible health plan (HDHP) could probably help you save some money by lowering your monthly premium. 

On the other hand, if your entire family seems to get the flu every year or if you have a chronic medical condition, an HDHP could end up being expensive. 

What’s the right choice for you?

Should you choose an HDHP?

HDHPs have several benefits to balance the higher deductible, including:

• Premiums tend to be lower than for PPO or POS plans.
• Networks are often larger.
• You may be able to negotiate and reduce some out-of-pocket expenses.
• You could qualify for a health savings account. 

If you’re young and healthy and don’t use your health insurance very often, this plan may be a good fit.

Or would a different plan be better?

Other aspects of a high-deductible plan aren’t as beneficial depending on your circumstances:

• Basics (like your annual physical) might be covered under an HDHP, but additional doctor visits likely aren’t.
• Many medical tests and prescription drugs aren’t covered, either.
• Your monthly expenditures could vary quite a bit from month to month.

If you end up visiting the doctor’s office frequently or if you have a health issue requiring routine appointments, a high-deductible plan may not be the most cost-effective choice. 

How should you decide?

It’s important to choose a plan with a deductible that works for you. For some families, choosing an HDHP would mean taking on a deductible of over $10,000, which might not be reasonable.

It’s also important to consider the right combination of features before making a plan decision, including copays, in-network options and the percentage of coverage.

Open enrollment begins on Nov. 1. Reach out before then to discuss the right health plan for you and your family.