What is a Good Deductible for Health Insurance?

General
1

Hi guys… Am choosing a new health insurance plan and I’m a bit confused about what a good deductible would be. I know it varies based on individual circumstances, but I’m looking for some general advice or guidelines. What factors should I consider when deciding on the deductible amount?

Thanks…

2 Likes
2

The deductible is slightly below average for employees at small employers and slightly above average for those at large employers (page 99).

The out-of-pocket maximum is relatively low, with only 20% of employers offering plans that have lower out-of-pocket maximums (page 125).

1 Like
3

I can’t believe my deductible is $400! Having a $3k deductible is unimaginable to me.

1 Like
4

You should consider your expected medical expenses for the year. Look at past spending and any upcoming treatments or medications.

1 Like
5

You should understand the maximum out-of-pocket limit for your plan. This is the most you’ll pay in a year for covered services, and it can guide your decision on what deductible makes sense.

1 Like
6

I recommend assessing how much you can comfortably afford to pay out-of-pocket in a year. A lower deductible usually means higher monthly premiums, while a higher deductible means lower premiums.

1 Like
7

Choosing a health insurance plan can be tough, but here are some tips for picking a deductible:

  1. Your Health: If you’re healthy and don’t visit the doctor much, a high deductible can save you money on premiums. If you have frequent medical needs, a lower deductible might be better.
  2. Monthly Premiums: High deductibles mean lower monthly premiums and vice versa. Think about how much you can pay each month versus potential medical costs.
  3. Emergency Fund: Consider if you have enough savings to cover a high deductible in case of unexpected expenses. If not, a lower deductible might be safer.
  4. Out-of-Pocket Maximum: Look at the total amount you’ll pay, including the deductible, copayments, and coinsurance. A lower deductible but high out-of-pocket maximum might cost more if you need a lot of care.
  5. Type of Plan: Think about the plan type (HMO, PPO, etc.) and what benefits come with your deductible choice.
  6. Employer Contributions: Check if your employer offers a Health Savings Account (HSA) or other benefits for high-deductible plans, which can help with costs.
  7. Your Budget: Choose a plan with premiums and a deductible that fit your budget.

Hope this helps you decide, I equally used this to settle on a deductible!

Good luck!

1 Like
8

A “good” deductible for health insurance is the one that strikes a compromise between your ability to pay for unforeseen medical expenses and your requirement for reasonable monthly payments. To choose the plan that best suits your needs, it can be useful to compare various options, think about how you use healthcare, and even speak with a healthcare expert.