Health insurance is a necessity for everyone but it can also be a financial burden. Many people struggle to afford the monthly premiums and the out-of-pocket costs for medical services. One way to lower your health care expenses is to choose a health insurance plan with a low or no deductible.
What’s a Deductible?
A deductible is the amount you have to pay for covered medical services before your insurance company starts to pay. For example, if your deductible is $1,000, you have to pay the first $1,000 of your medical bills in a year before your insurance kicks in. The higher the deductible, the lower the premium but the more you have to pay upfront for your health care.
A low or no deductible plan, on the other hand has a deductible of $500 or less, or even $0. This means that your insurance company will start to pay for your medical services right away or after a very small amount. The downside is that these plans usually have higher premiums, but they can save you money in the long run if you use a lot of health care services.
Who should consider a low or no deductible plan?
A low or no deductible plan may be a good option for you if:
- You have a chronic condition that requires regular doctor visits, tests, treatments, or medications
- You are pregnant or planning to have a baby
- You have a large family or multiple dependents
- You are over 65 or have a higher risk of developing health problems
- You want to have more peace of mind and less financial stress in case of an unexpected illness or injury
Where can you find a low or no deductible plan?
There are several ways to find a low or no deductible plan that suits your needs and budget. Some of them are:
- The Health Insurance Marketplace
The Marketplace is a website where you can compare and enroll in health insurance plans that are available in your state. You can also see if you qualify for financial assistance such as tax credits or subsidies that can lower your premium and out-of-pocket costs. Some of the plans offered on the Marketplace have low or no deductibles especially if you are eligible for cost-sharing reductions. You can
- Your employer
If you have a job that offers health insurance benefits, you may be able to choose from different plans that your employer provides. Some employers may offer low or no deductible plans as part of their benefits package or as an option that you can pay extra for. You can check with your human resources department or benefits administrator to see what plans are available and how much they cost.
- Short-term plans
Short-term plans are temporary health insurance plans that last for up to 12 months with the option to renew for up to 36 months. These plans are designed to provide coverage for unexpected medical emergencies such as accidents or injuries. Some short-term plans may have low or no deductibles, but they also have many limitations and exclusions
Choosing a health insurance plan with a low or no deductible can be a smart way to save money on your health care costs especially if you use a lot of medical services. However, you should also consider other factors such as the premium, the co-payments, the coinsurance, the network, and the benefits, when comparing different plans.
