Health insurance costs are rising and the economy is uncertain at best. In this climate, more and more consumers are considering High-Deductible Health Plans (HDHPs), often known as Catastrophic Health insurance.
What are the benefits of HDHPs?
Some of these plans feature lower-than-average premiums (but with higher deductibles for all medical expenses, except qualified preventive care) up to the annual deductible. After that, some HDHPs pay 100% of your covered medical expenses. Others initially pay a share of your medical bills (such as 80%) before providing full payment when you reach an out-of-pocket maximum. Your premiums don’t count toward your deductible or out-of-pocket maximum.
In addition, many of these plans cover a full range of health care services — not just hospital and emergency medical costs.
Before you buy an HDHP, ask yourself these questions:
- How much can you afford to pay for Health insurance?
- What coverage do you need?
- What does the plan cover, and not cover?
- How much is the deductible, and how much, if any, would you pay in coinsurance up to the out-of-pocket maximum?
- Does the plan offer a strong, nationwide network of providers?
Our agency’s Health insurance professionals would be happy to help you determine whether an HDHP can benefit you and to find the plan that meets your needs most effectively. Just give us a call.