Can a High-Deductible Health Plan Save Me Money?

Posted on June 11, 2014

It might. Let’s go over what a high-deductible plan is and then look at why it might or might not be a fit for you.

High-Deductible vs. Copay Plans

Copay plans have higher monthly costs and steady, small copays due at every medical visit. A high-deductible plan costs less per month, and preventive care is free. If you have an issue, the full cost comes out of your pocket, but only up to your deductible amount. That might be $2,000 for an individual or $4,000 for a family. After that, care is free for the rest of the year. In October, HNE will launch a new online cost-of-care estimator to help you predict your costs before appointments.

In a high-deductible plan, you and your employer generally pay less per month. Your employer may place some of the saved money in a Health Savings Account (HSA). You will use it to pay your medical bills, and you can add more too. Money there will not be taxed as income. If you don’t use it all, it will pile up year after year, ready for your family’s care.

High- vs. Standard-Deductible Plans

1. Depending on your family’s needs, standard-deductible plans may cost less than copay plans and more than high-deductible plans, both monthly and overall. Deductibles are $250–$4,000, depending on the plan, and there is no HSA. Some services go toward your deductible and others have copays. At HNE, this means no copays for preventive care, which is free in high-deductible plans and does not go toward your deductible. It also means copays for pharmacy needs and emergency room visits. High-deductible plans count both toward your deductible. After you reach your deductible, you will have low to no costs (depending on the plan) for services until you reach your Overall Out-of-Pocket Maximum (which is the maximum amount you can be required to spend, adding up deductibles and other cost sharing after the deductible).

A high-deductible plan might be a good fit if:

• Your family doesn’t tend to need more than regular check-ups
• You and your employer can contribute enough to your HSA
• You are comfortable with knowing that if issues arise in your family, your medical care may become more costly instead of less

A high-deductible plan might not be a good fit if:

• Your family has many medical and pharmacy needs
• You and your employer cannot contribute enough to your HSA
• You are uncomfortable with knowing that if issues arise in your family, your medical care may become more costly instead of less

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