Health Insurance and High Deductibles - Are You Making the Right Choice?

So you are shopping around for health insurance. High deductible with a lower monthly premium? Or lower deductible with a higher monthly premium? Which one is better?<br><br>The answer depends on how much health care your household needs. If you or your family rarely ever gets sick,sees the doctor, or takes prescription drugs, or you aren't planning for a pregnancy, then a lower monthly premium with a higher deductible might be the sensible option for you.<br><br>But what if your family does require frequent medical care, prescription drugs, or you are planning for a pregnancy, then you are going to need to decide whether for your health insurance, high deductibles with lower monthly premiums make sense, or vice versa?<br><br>If you require frequent medical care, then it really makes very little difference. If you pay lower monthly premiums and higher deductibles, you will be paying less to your insurance company but more to your health care providers. If you pay higher monthly premiums and lower deductibles, you will be paying more to your insurance company but less to your medical providers.<br><br>If you do the math, you may find (and this is not uncommon) for you to actually wind up paying the same amount either way, overall, over the course of an entire year!<br><br>After all, "out of pocket expenses", whether you pay them to your health insurance company or you pay them to your medical providers, are still "out of the same pocket"!<br><br>One advantage of higher premiums is that it is easier to budget for your medical expenses on a month-to-month basis, since your costs are more fixed. A Health insurance high deductible plan with lower monthly premiums means that your monthly medical expenses are more variable, and would require you to budget for them on your own.

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