Not sure about low deductible health insurance plans? There’s a lot of misinformation out there – here are four myths (and the right facts) about each of them.
Fact: Many combinations of out-of-pocket costs and premium costs are available. The costs paid by a policy holder include premiums, copayments, coinsurance and the deductible. A low deductible doesn't always mean you will pay a higher premium. You can buy a plan with a low deductible and a low premium, but you may have to pay more for copays or coinsurance when you see the doctor and when you buy prescriptions. Chances are, your maximum out-of-pocket will also be higher.
Fact: Low deductible plans generally have some out-of-pocket costs. For example, even if you purchase a platinum level plan with a $0 deductible, you will probably have copayments or coinsurance for visits to the doctor’s office and prescriptions.
Fact: Low deductible plans can be the right choice for people who rarely need health care too. For example, certain types of health insurance plans have both low premiums and low deductibles. One such type of plan is designed for people who don’t expect to be in the hospital for any reason. In these plans, costs for in-patient care may be several thousand dollars per day, while other out-of-pocket costs remain in the medium range.
Fact: Buying a low deductible plan doesn’t mean that you won’t have to pay any costs beyond the deductible. You also need to check what your coinsurance is. Generally, you have to pay your deductible, then your coinsurance cost. Coinsurance is a percentage of the cost of a health care service, and the percentages generally range from 0 to 50 percent.
As a rule of thumb, it’s best to look at all out-of-pocket costs when you buy a health insurance plan. A low deductible is just one aspect. It could be that for your specific needs, a high deductible plan will actually be a better fit, depending on what the coinsurance percentage is, and what the copays are.
Have a look at our health plans in Wisconsin to see what may work best for you. Still have questions? Give our knowledgeable customer service representatives a call at 800.362.3310.