Today USA people find it harder and harder to cope with the ever growing medical expenses and health care costs. Of course, there are many insurance plans available on the market, but not everybody can really afford to pay high premiums on those plans. Some people call the situation on the medical service market a catastrophic health crisis. But, in this post we will take a look at the kind of high deductible health insurance plan, which allows people to afford moderate size or even minimal size of premiums and still have their medical needs covered. We will take a look at some pros and cons options and will try to figure out how one can benefit from this kind of medical insurance.
Now, let us start with the definition of what the word deductible means in the high deductible health insurance context. A deductible is the amount of money you pay covering your own medical expenses before your insurance company steps in and starts to cover your health care needs with their funds. Basically, many insurance companies do not cover any medical expenses, including such things as prescription drugs or emergency services, until you pay down and use up your deductible. So, in order to benefit from that insurance plan you have to have your savings on hands in the amount stated by your high deductible health insurance plan. So, you may wonder: what good is this kind of insurance if I still have to pay for my medical needs from my own pocket? Well, the trick is this: the higher is your deductible, the smaller monthly premiums you pay. So, this makes high deductible health insurance more affordable, than other kinds of plans. That is the major benefit of resorting to the high deductible health insurance plan. You simply get a chance of cutting down your monthly expenses and still have certain medical insurance protection.
But, of course, this kind of high deductible health insurance plan requires a person to be organized and plan his or her deductible expenses from ahead of time. That is why most high deductible health insurance plans work well together with HSA (Health savings accounts). These special accounts allow people to save there enough to cover their deductibles. Besides, you can benefit from the high deductible health insurance HSA compatible plan, because this account allows people to draw money out for medical needs tax free. And, people over 65 years old are allowed to draw money from their health saving accounts tax free, using them for any purpose they want.
However, to find this high health insurance plan most suiting to person’s medical needs, one has to consider certain things, such as current or past health conditions. People with severe health problems might need more extended medical coverage and more expensive one, so high insurance plan may not work well in this case. But, if you lead a healthy lifestyle and have no current or past medical conditions, than a high deductible plan covering your major medical needs would also help you to save on your health care service costs and cut down your high monthly premiums by consenting to go with higher deductibles.