About High-Deductible Health Plans

So-called "high deductible health plans" are a lot likeHigher out-of-pocket (co-pays and co-insurance) is
conventional (PPO/HMO) insurance plans, but theyallowed for out-of-network care.
typically have higher deductibles (over $1,000 per5. The can't cover prescription drugs before the
year). The idea is that even though the deductibledeductible is met.
is high, you save so much money from the lowerHDHP's often offer a better value for money as
monthly premium costs that the HDHP is a bettercompared to a lower deductible plan. HDHP
deal in the long run, when used in conjunction withpremiums are significantly lower, and any
a tax-free Health Savings Account (HSA).out-of-pocket cost risk to can be minimized by
Last year, in order to setup an HSA, you neededfunding an HSA to cover out-of-pocket costs up
to find a High-Deductible Health Plans that met theto your deductible. Also, HDHP premiums have not
following qualifications:been subject to the kinds of rate increases that
1.A minimum deductible of $1,000 for self ortraditional health plans have seen over the last
$2000 for family coverage.few years.
2. A maximum out-of-pocket limit of $5,100 forThis is not true in all states and for all health plans.
individual coverage, and $10,200 for familySome have said that consumer-driven health
coverage.plans, like the HSA+HDHP combo, works best for
3. Preventive care can have first dollar coveragerelatively healthy people. It is certainly true that if
(i.e. without a deductible). Preventive careyou're healthy, and don't use medical services
examples include: periodic health evaluations likeduring the year, you'll save a lot of money with a
annual physicals, screening services likehigh-deductible plan. But it's also true that CDH
mammograms, routine prenatal and well-child care,plans, applied wisely, can result in savings and
child and adult immunizations, tobacco cessationgreater flexibility for consumers of all kinds.
programs, and obesity weight loss programs.Individuals who are likely to make moderate or
Prescription drugs taken to prevent the onset ofheavy use of medical services should be sure to
a condition for which a person has developed riskunderstand the benefits covered under their plan,
factors for can be considered preventive care,and should pay special attention to the
like cholesterol-lowering medication. A general ruleco-insurance, maximum out-of-pocket, and any
of thumb for what is or is not preventive care isexclusions or carve-outs. Healthia's health cost
the care does not include any service or benefitmodeling tool can help you decide if a CDH plan
which treats an existing illness or condition. 4. Thewill work for you.
plan can use co-pays to cover preventive care.