Health Insurance where you pay oop till a certain point?

I have been looking to cut costs. DH is self employeed and pays $12k a year for health insurance. Our broker mentioned to us that there are health plans out there where you pay like 1/2 of what we pay now a month but you pay the whole doctors bill up to say $4000 then after that the insurance will kick in. So if you go to the doctor like 1x a year it saves money. We are all healthy and I think this could save us some money. Anyone have this/heard about this/ have an opinion on this?

Re: Health Insurance where you pay oop till a certain point?

so you are looking for hospitalization only?

There are catastrophic plans out there..it sounds like you're just looking for something in case something big happens.

Re: Health Insurance where you pay oop till a certain point?

Re: Health Insurance where you pay oop till a certain point?

It is called a "high deductible plan". Sort of operates like car insurance where you are liable for the first $2,000 (or whatever your deductible is) in physician charges and anything after that you have more traditional coverage.

Just make sure you read the fine print because after you meet the deductible many the plans will pay a certain percentage of any additional service (for example 80% of the service and you are responsible for the remaining 20%). It doesn't sound like a lot, but if it was something like chemo or radiation that you needed to have repeatedly over a year, those 20%'s would really add up.

Hope that helps you!!!!!!!

Message edited 3/14/2008 3:13:19 PM.

Re: Health Insurance where you pay oop till a certain point?

Posted by Lucky09

It is called a "high deductible plan". Sort of operates like car insurance where you are liable for the first $2,000 (or whatever your deductible is) in physician charges and anything after that you have more traditional coverage.

Just make sure you read the fine print because after you meet the deductible many the plans will pay a certain percentage of any additional service (for example 80% of the service and you are responsible for the remaining 20%). It doesn't sound like a lot, but if it was something like chemo or radiation that you needed to have repeatedly over a year, those 20%'s would really add up.

Hope that helps you!!!!!!!

Re: Health Insurance where you pay oop till a certain point?

I would only do this if you had $4,000 set aside that you won't touch unless it's for this.

Also, consider whether that $12,000 per year in health insurance is an important tax deduction for you guys or not.

Does the plan have prescription drug coverage? Do you plan to have another child? What if you required surgery? Diagnostic tests like mammograms, x-rays, an ER visit (if necessary), etc. get costly.

What about dental / vision?

I'd also read the fine print to make sure there aren't other important limitations that make it different than your current coverage.

Re: Health Insurance where you pay oop till a certain point?