What is the point of a health insurance plan if you never met your deductible?
I am 22 and applying for my first health insurance. I do not need much medical services, and want a low affordable premium. However, when I look at sites such as Blue Cross, it seems that low premiums go with high deductibles. I don’t think I would ever meet the yearly deductible, and thus, cannot get any health services covered. So what is the point of such a plan? Thanks.
July 31st, 2010 at 8:04 pm
its for what if scenarios. I never thought i’d be anywhere near my deductible on blue cross but i will be since im pregnant and have lots of appointments and will have hospital visits and baby visits etc. Its good for people who will need it or for what if situations.
July 31st, 2010 at 8:06 pm
The original purpose of health insurance was to cover catastrophic illnesses and accidents. It was not meant to be used for regular doctor visits or minor hospital stays. Then everything got out of hand and now people want 100% coverage, even on regular doctor visits.
July 31st, 2010 at 8:51 pm
I don’t think that their is a point then. Try going with Blue Cross HMO or Blue Cross PPO. They are really good
July 31st, 2010 at 9:04 pm
The lower premiums often come with higher deductibles. The same also applies other forms of insurance, such as auto insurance.
The high deductible plans are for those who don’t have much in the way of medical needs or expenses. It is coverage that is there in case you need it. Lets say you are involved in a car accident, or other catastrophic event and end up in the intensive care unit for several days. After the deductible, you aren’t responsible for the hundred of thousands of dollars that uninsured patients would face in similar situations. Depending on the insurance plan, you may have a copay or cost sharing, and the insurance will cover the rest. It beats being in debt for hundreds of thousands of dollars that you would face if you were uninsured. If you do choose a plan like this, look for a plan that may waive the deductible for preventive services such as physicals to make sure you are in good health.
Honestly, I would choose a plan with better coverage, even though it would cost a little more. It is impossible to know what the future holds, and it is good to have coverage you can rely on.
July 31st, 2010 at 9:20 pm
That’s a fair question and, to be honest, shows how “differently” people consider health insurance from, say auto or fire insurance. Here’s the question for you to consider:
Do you want health “insurance,” or “health care financing?”
“Insurance” helps you pay for unforeseen expenses that you can’t handle yourself (like, say, that $87,000 hospital/surgical bill after the car wreck, etc.). “Health care financing,” like anything else you usually finance, lets you “make payments” to buy things that you don’t want to pay for all at once (like, say, that $2300 big screen HDTV).
Here’s a few tips:
1. Buy a plan with a big deductible ($2,500 – 5,000) to keep your cost down. REMEMBER: even with a big deductible you can still find plans with the things you like: doctor and drug copays.
2. Stick with the “brand name” companies, like Blue Cross, Humana, Aetna, etc. There are a lot of other plans that “look good” but, if or when you have that big claim, they’ll vanish like an honest politician.
3. Talk to a broker who specializes. Visit NAHU.org (see below) to find one near you. NAHU is the professional association of brokers like me who specialize in health insurance.
4. Get you own quotes online. Visit my site (below) or go to Norvax.com to get prices.
Hope this helps a bit!
July 31st, 2010 at 9:25 pm
What if!
That means, say today you are hit by
another car, taken to the hospital, require
surgery…this will cost $25,000 oh did I
forget to tell you the other driver responsible
for the accident did not have insurance?
If you think this and many more scenario’s
won’t happen to you….think again.
July 31st, 2010 at 10:12 pm
If you want low premiums, then you have to have high deductibles.
Insurance concepts is either you pay now, or pay later. Having insurance helps you prepare for the unexpected car accidents, sudden illness, sport injuries, etc. Everyone should have it.
So if you cannot afford it now, then you have to get the high deductible plan. When you can afford it, then you have to upgrade or change the plan. It’s better than nothing. Remember, pay now or pay later.
But make sure you understand all your coverages when picking the right plan.