The deductible portion of your health insurance is one of the hardest portions to get right. This is the amount of money you must pay towards your healthcare costs before the insurance begins to pay for your care. For example, if may be $1,000. This is generally an annual amount. Once you spend more than $1,000 (or the amount of your deductible) on medical care, the insurance begins to pay in towards your costs. The right level is essential because it defines not only what you will pay but also what you can expect in terms of premium charges.
What Can You Afford to Pay First?
Deductibles are often annual amounts that reset each year. However, this is money you need to feel comfortable enough having on hand to meet your medical costs before having any insurance coverage. For example, if you go just for a few basic tests or screenings, and your costs are $900, you'll need to be able to pay that $900 out of pocket. The question is, how much can you afford to pay towards medical care each year?
Factor in the amount of money you routinely have available to cover your expenses, especially emergency care expenses. Then, determine what level you feel comfortable with when purchasing your health insurance.
Why is a Higher Deductible Important?
It may seem like the best decision is to choose a low deductible so you do not have to pay much out of pocket. However, the higher this number is, the less you will pay for your insurance overall. If you raise your deductible to the highest level you comfortably feel you can pay, you can significantly reduce the amount you pay in premium charges.
When looking for a health insurance plan, it’s important to consider the various options available to you. Get quotes at various deductible levels to give you a better idea of what your options are and how much raising your deductible will impact your premium costs. The good news is that it’s possible to compare options carefully and to determine which level of coverage is best for you and your family based on your budget overall. Finding the right combination means the most cost savings overall.