Many families made the switch in 2020 from a low deductible health insurance plan to a high deductible health insurance plan on the Marketplace.
This is because families are receiving less tax subsidies in 2020 compared to 2019. The tax subsidies, or credits, is the amount of money families get to help pay for their monthly premium when they purchase a health insurance plan through the Marketplace (aka Obamacare). On average, we saw families get $25-$100 less tax credits this year. This made premiums on low deductible plans jump. Some families saw a 300% increase.
When this happens, we add up all the cost of insurance to see if the benefits still out weigh the increase in premium dollars coming out of your pocket. We take into consideration premium dollars, number of times they see their doctor or doctors, medications, and any planned procedures they may need. When families have low number of doctor visits, low or no medications and very few health concerns, we recommend a high deductible health insurance plan.
There are many benefits of a high deductible plan. They have very low premiums, in many cases under $50/mo. Preventative care is covered 100% with no copays or deductible to meet first. The deductible is usually waived for visiting your primary care doctor and you only pay a small copay. These plans will usually waive the deductible for a limited number of urgent care visits as well.
The down side is if you have a catastrophic event and have to meet the high deductible. For many families, that is devastating place to be. Most common reasons that families meet their deductible are accidents, being hospitalized for sickness, cancer, and heart attacks.
That is why we back these plans up with an accident plan with optional riders for sickness, hospitalization, cancer heart attack and stroke. Basic accident plans pay out in case of an accidental medical emergency. This is more than just car accidents. It covers slips, falls, sport injuries, broken bones, cuts and other accidental injuries. The benefit on these plans are usually between $2500 and $10000.
We like to match the accident benefit to the out of pocket maximum amount on your medical plan. The out of pocket maximum on a medical plan is a stopping point. It means that the insurance company will pay for 100% of medical costs after you've paid to that limit for the calendar year. This way, if your injury ends up needing extra tests, x-rays, or MRI's and costs more than your out of pocket maximum, you won't be charged any extra and the accident plan will cover the full out of pocket limits.
The optional riders can be added to your accident plan. Our agents will go over any person history and concerns you have to choose the best fit for your family. The most common rider added is the hospitalization sickness rider. But depending on your age and family history, others may be a good choice for you.
Accident plans are a very affordable way to minimize your risk. They don't cover every situation, but they do reduce the chance of having to go in debt for medical bills. There is no open enrollment for these plans so you can sign up and have benefits start as soon as next day.
If you'd like to see if adding an accident plan is right for you and your family, contact one of our agents today. You can set up an appointment to meet in person or over the phone.