High deductible health plans have increased over the past few years. How are these different than...

High deductible health plans have increased over the past few years. How are these different than the traditional health plans? As a consumer, which plan would you prefer and why?

Expert Solution

A traditional health insurance plan works on a system of copays and deductibles. The plan helps to pay your doctor's bills, lab tests, and prescriptions. With a traditional health insurance plan, you may be financially responsible for paying copayments (or copays), deductibles, and coinsurance.

However, once you have met your deductible, you are usually only responsible for coinsurance, until you reach your out-of-pocket maximum. It’s important to stay within network when choosing a health care provider or going to the doctor to keep your costs down with a traditional health insurance plan.1

As the name suggests, a high-deductible health plan (HDHP) has a high deductible that you must meet before the insurance will start paying its share of your office visits, lab tests, and prescriptions.

It's basically will depen on consumer what are his/her preferences

Deciding on your health care plan comes down to your personal circumstances and financial situation. Traditional health insurance plans have lower deductibles, so this could be a better option for you if you go to the doctor often or expect to have major medical expenses, such as having a baby, in the near future.

Alternatively, high-deductible health plans have a lower premium, which can save you money in the long run. If you are healthy and are looking for a way to cut costs, this may be a great option to consider. However, you want to ensure that you have the liquid capital to cover the high deductible.

Basically in today's time, high deductible plans are favourable one

Rahul Sunny answered 7 months ago

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