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How to Save Money with High Deductible Health Insurance

Learn how to cut your health insurance costs and keep your finances healthy without sacrificing quality care.

By
Laura Adams, MBA,
November 9, 2011
Episode #242

Page 3 of 3

How to Compare Health Insurance Plans

When it comes to comparing health insurance plans, there’s more to it than just the monthly premium, after all. It’s important to evaluate different policies carefully in light of your situation. Consider the following:

  • the overall state of your health
  • how often you visit the doctor
  • whether you need expensive medication
  • the annual dollar limit on coverage
  • whether you would qualify for healthy lifestyle discounts

Make a list of what you need in a health insurance policy and then compare costs based on the following:

  • what health services are covered
  • copay amounts for doctor visits
  • copay amounts for prescriptions
  • hospitalization costs
  • emergency costs
  • whether your preferred doctor is in the network

Remember that the purpose of having health insurance isn’t to cover every expense associated with a head cold—it’s to reduce the cost of routine preventive services and to protect your finances against a devastating, expensive major medical condition.

Before opting for a high deductible health plan, be sure you can afford the deductible. If you fund a HSA on a consistent basis or have other emergency savings to tap, you probably can handle a higher deductible. If not, having higher monthly premiums could help you avoid a big, unanticipated medical expense.

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More Resources:
IRS Publication 502, Medical and Dental Expenses
IRS Publication 969, Health Savings Accounts and Other Tax Favored Health Plans
Preventive care benefits that can be provided by a high deductible health plan
National Association of Insurance Commissioners

Image courtesy of Shutterstock

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