A plan with a higher deductible than a traditional insurance plan. The monthly premium is usually lower, but you pay more health care expenses before the insurance company starts paying its share (your deductible). If you're enrolled in a plan with a higher deductible, preventive care services (such as annual checkups and exams) are usually covered without you having to pay the deductible first. And a higher deductible also means that you pay lower monthly costs.
If you don't get medical care often, that could save you a lot of money. In addition, some employer-sponsored health plans combine high-deductible plans with a Health Savings Account (HSA) that your employer can contribute to, and this account can be used to cover your deductible. A deductible is the amount you pay for health care services each year before your health insurance starts paying. Yes, a higher deductible means a lower premium, in most cases.
By choosing a higher deductible, you agree to pay more out of pocket in the event of a claim and, in return, you'll pay less for your monthly premium. A higher deductible means lower premiums. A lower deductible means higher premiums. Keep in mind that insurance deductibles are based on financial risk.
If you choose a higher deductible, you'll pay a lower rate, but you also assume greater financial responsibility for the expenses you'll have to pay for a claim. Unlike deductibles for cars and property, your health insurance deductible is the amount you must spend out of pocket before your insurance pays for most types of care. A deductible is what you pay out of pocket when you file a claim before the insurance takes effect, so to decide if a higher deductible is right for you, consider how much you have saved, how much you could pay out of pocket in the event of a claim, and how often you have to file insurance claims. A deductible is the part of an insurance claim that the insured must pay out of pocket before the policy coverage is activated.
