Should I buy deductible health insurance?
A deductible in insurance is the amount YOU pay before the insurance
company pays. The higher a deductible, the lower the premiums.
There are few several instances where you might want a deductible plan, as in with a gimmick type MSA or medical savings account plan. Also if you have health problems or are sick, the carrier may only offer you a deductible plan.
You can lower your health insurance premium in better ways than getting deductible plan. A higher co-payment or no prescription or drug card are options. Possibly go with a dreaded HMO if you are worried about back end expenses
A good analogy of a deductible plan is the coin toss.
Say I charge you .50 each coin toss to play with me. If you win, you get nothing,
if you lose, you give me $5.
Not a very appealing game.
Compare that to the game of no deductible health plans. Let's say I charge you .60 each coin toss to play with me. If you win, you get $5, if you lose, you give me $7.
Summary: Deductible plans are seldom worth the money. You only save a few dollars per month compared to a no deductible plan, and have to pay $1,000-$10,000 before the insurance company starts paying (except for basic stuff). Carriers love deductible plans because they buy reinsurance, so their risk is low. Instead YOU take the initial risk with a deductible plan.
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