Health Insurance: Are High Deductibles really that Scary?
If you recently shopped for Health Insurance, you probably have noticed something. Most (affordable) plans have have very High Deductibles & High “Out-of-Pockets.” It’s frustrating to think that you could owe over $8,000 until your insurance covers at 100%. Most folks don’t have that kind of money just chillin’ in the bank specifically for their high deductible. Some have an HSA (good idea), but most don’t. For the purposes of this article, I will show you how to protect yourself against a big deductible without a health savings account (HSA).
Start with these questions:
- What does a normal year in Healthcare look like for you?
- Do you have any serious preexisting condition that requires ongoing treatment?
- Are you taking expensive Rx medication?
- Do you go to the doctor just once a year for a wellness visit?
- Are you healthy for the most part and only go to the doctor if it’s a “must”?
If you are healthy and rarely use healthcare, ask yourself this:
- When was the last time I hit over 5K in Medical Bills? (even if an Insurance company paid the claims)
If you usually don’t, then the hope is you will not again for the next 12 months (or ever). Of course, everybody has a different situation. From my own personal experience, here are the main reasons why people hit their deductibles:
- Accidents
- Critical Illnesses (Cancer, Heart Attack, Stroke, etc.)
- Hospital Sickness Admission
- Pregnancy
If you don’t have serious preexisting conditions (or ongoing medical treatment), a lot of the services you would normally utilize (Dr Visits, Preventative, Etc.) would most likely be subject to just a copay anyways (assuming it’s a Major Medical policy with copay options. Check your policy carefully before assuming too much).
The best way I have helped others solve this problem is with Ancillary (supplement) insurance. Pending your location, there are many different Accident and Critical illness polices that are specifically designed to protect yourself from your big deductible. These polices are usually very affordable and will help cover the deductible for the main reasons (why I think) people get that far into medical bills.
Accidents can happen to anyone. Young, old, in shape, out of shape. One trip down the stairs could potentially bankrupt someone. Even with insurance in this case, you could be paying ever bit of that deductible.
Critical illnesses are life changers. Nobody should need an explanation on why these events are emotional difficult. Financially speaking, it can be devastating as well.
If these medical threats are the main things you are concerned about, adding an accident & critical illness policy to a high deductible plan is an excellent strategic move. This should help make the deductible seem a lot less scary.
That’s what’s we’re going for, right ?
Hopefully these events never happen. But instead of waiting for something bad to happen first, try getting ahead of a high deductible plan with supplemental polices (accident & critical illness). In my opinion, there is a lot of value in ancillary products if you enjoy peace of mind. Better yet, you’d probably be amazed how affordable these plans actually are.
Chris Young is an Independent Insurance Broker who specializes in Healthcare. If you need help with your insurance needs, contact Chris directly 330-578-7707
