Choosing the best health insurance coverage for your family can be tricky.
What seems like a high up-front cost could save you hundreds or even thousands of dollars down the road.
However, to be able to choose the right insurance, you need time and knowledge in this specific area, both of which are difficult to find for families.
Understanding deductible insurance and how that process works can help you choose the best policy for your family. Here are four tricks to get the best coverage possible.
Identify Your Coverage Needs
Before anything else, you need to determine what you require for coverage. Not all family health insurance policies are the same. Being able to identify the specifics of what you need, as well as highlighting things that would be nice to have can help you find the right option that fits your budget.
For example, if you know that your son is going to need braces next year, choosing a higher cost coverage package that offers advance coverage of orthodontic work could be well worth your while. Alternatively, if you have no use for extras like massage therapy and physiotherapy at this time, choosing a package without these features can prevent you from paying for something you won’t use.
Evaluate Low vs. High Deductible Plans
Deductibles are the amount of money you pay out of pocket for health services before your insurance kicks in. It works the same way as your car insurance. For example, if you were in a car accident and did $2000 worth of damage to your vehicle with a $500 deductible, you would pay $500 and your insurance would cover the rest.
Similarly, if you were in a car accident and your health insurance had a $1000 deductible and your medical bills totalled $5000, you would pay $1000 out of pocket before your insurance took over.
When evaluating a health insurance plan for your family, you need to consider whether you want a low deductible plan or a high deductible plan. As with anything, there are pros and cons to each.
High Deductible Plans
A High-Deductible Health Plan, or HDHP, means that you are responsible for a higher fee before your insurance kicks in. That high rate is the downside of going this route.
As for benefits, when you have an HDHP, you are eligible for a Health Savings Account (HSA). By using an HSA, you not only save for health costs, but you also reduce the financial burden on your income as funds in an HSA aren’t subject to taxation. Generally speaking, when you have an HDHP, your premiums are also lower.
Low Deductible Plans
Low Deductible Health Plans (LDHP) are built so that you pay less before your insurance provider takes over. These are beneficial for families who anticipate a lot of visits to the doctor. The downside is that an LDHP tends to have significantly higher premiums.
How to Choose The Right One?
Choosing between deductible insurance plans for your family is a personal decision based on your income and expected health expenses. Crunch the numbers to determine which option is more affordable for you.
Max Out Your Options
Once you hit your deductible, it’s worthwhile to maximize the advantages. Those appointments that you would have put off should be scheduled to fall within this period of time. For example, if you have massage therapy coverage but have been pushing through the discomfort of muscle tension, now is the time to schedule it in.
It’s also worth evaluating and taking advantage of the various discounts, offers, and partnerships that make up your health insurance policy. Evaluate the extras when looking at potential plans, and determine how you could use them to make the most of your insurance.
Compare the Cost vs. Value
There is a difference between cost and value when looking at insurance plans; the cost will be set, but only you can determine the value it offers you.
The best way to look at cost versus value when evaluating insurance plans for your family is to use a comparison service or create a comparison table of your own. Advanced coverage in one area may not appeal to you while extended coverage in another area may. Take time to scrutinise the offerings, looking at the co-pay, the coinsurance, and all of the fine print.
Take Time to Choose
Choosing a health insurance provider for your family doesn’t have to be a source of extra stress. Set aside some time to ensure you understand the jargon and evaluate your options. Do some research and choose the plan that works best for your family’s unique needs.