It is important to know that with insurance although you often get more when you pay more, you don’t always get a full dollar’s worth of additional coverage for every extra dollar you pay for coverage. For this reason catastrophic coverage or high deductible coverage is often the best value.
There are administrative and other costs that are included in your health insurance premium. These additional costs mean that if you have average medical expenses, you will do better if you paid for those medical expenses out of your pocket.
When you pay for expenses out of your pocket, you just pay the cost of the bill. The insurance company administrative expenses are not tacked on.
Since we cannot guarantee that our bills will be average, we take too much risk if we decide to be our own insurance company for all of our health care needs. However, if we are willing to pay for the medical expenses associated with minor illnesses, we can raise our deductible and get a rate reduction that usually more than justifies the additional risk.
Although you will have to pay for more of your expenses when you have a high deductible health insurance policy, you can still get the insurance company’s reduced rate when you pay out of your pocket. Your insurance company will pay a reduced rate when you get care from one of their network providers. You pay the same rate when you have a health insurance policy but have yet to meet your deductible.
Insurance works best when we let the big insurance company pay for the big expenses and you pay for the smaller expenses out of our pockets. By accepting the right amount of risk ourselves and transferring the right amount of risk to the insurance company our overall costs can be much lower.
You can get quotes for low cost high deductible health insurance from this site. We look forward to helping you save money.