6 Things You Need to Know About High-Deductible Health Insurance Plans
Recently, a lot of companies started using a high-deductible health insurance plan for their employees, driven by the need to reduce cost. However, paying a smaller premium means your employees may have to be burdened with a higher deductible. Before you decide whether you want to use a high-deductible plan, here are some things to know.
What are the benefits?
Both the company and the employees will pay much less premium if they choose a high-deductible insurance. This can turn into cost savings for the company, and more income for the employee.
What are the disadvantages?
This type of insurance may stop employees from having preventive check-up. This is because they have to pay an expensive deductible each time they visit the doctor for a check-up. In the long term, this can lead to major diseases that are detected too late, which will cost both the company and the employee even more.
Does company size matter?
A high-deductible plan is well suited with either small or big businesses. A lot of companies of various sizes are switching to this plan to lower their healthcare cost.
Will switching plans be hard?
Selecting or switching to a high-deductible plan is as easy as getting any other type of health insurance plan. Companies can even provide both high-deductible and traditional co-op plans for their employees, giving them the ability to choose which one they would prefer.
Are there other impacts?
Aside from cost savings, selecting a high-deductible insurance will make employees think twice before getting an appointment with their doctor. With the traditional co-op plan, some employees tend to visit the doctor too much because of the small deductible. A higher deductible means employees must learn when is it needed to make a claim.
Will the insurer pay less for claims?
You might think that because you get to pay lower premium, the insurer will lower the amount of money they would pay when you make a claim. This is not the case because you have to pay a higher deductible when making a claim. In reality, some high-deductible health insurance plan may provide an even better coverage than the traditional one.
Knowing these facts will help you decide if this type of plan is best suited for your company. You can consult your insurer if you want to know further about a high-deductible plan. Choosing the right insurer will be important so you can get the best deal.
At Sameday Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. To learn more about how we can help you, please contact our agency at (888) 750-9775 or Click Here to request a free quote.
Tags: Health Insurance