Zero Deductible Health Insurance

Buying a zero deductible health insurance plan can mean that you pay extra for lousy coverage.  Although this isn’t always true, a zero deductible policy can have other cost shares.  Your monthly premium is likely to be higher than that of a plan with a moderate deductible.  You may also pay more in coinsurance or co-pays.

A health insurance policy that allows its policyholders to go to the doctor or hospital without any money out of their pockets will tend to be overused.  Insurance policies that are overused will cost the carrier more and therefore will cost you the consumer more.  A policy that has a zero deductible and no co-pays or other cost shares will be prohibitively expensive should an insurance company decide to offer such a healthcare policy.

If you would like to have fixed, predictable healthcare costs, the best option for you may be a high deductible health plan with a health savings account.  Believe it or not a high deductible plan may be your best zero deductible plan if your couple it with a health savings account (HSA).

An Aetna zero deductible health insurance policy offered to a Connecticut couple in their fifties might cost them $800 a month.  This plan has no deductible but it has other cost shares.  They could pay up to $7,500 in coinsurance each year.  This is in addition to any co-pays.

A high deductible health plan from Connecticut’s Anthem Blue Cross Blue Shield with a $2,500 family deductible might cost the same couple $600 a month.  If you divide the $2,500 deductible by 12 you come up with $208.33.  This means that this couple’s maximum costs when you add their cost shares and their premium together amount to about $810 a month. 

For $10 more a month, they get a true zero deductible plan since this plan has no other cost shares.  But wait there’s more… if they have low or moderate medical expenses, they get to keep any of the $2,500 that they don’t spend.  There is still more… they can probably put the $2,500 into an IRA-like account and reduce their taxes.

Being creative with your health insurance policy can mean that you save significant amounts of money on your coverage. 

A zero deductible health insurance policy may be cost more than it is worth.  However, if you are willing to be creative and look into your options with high deductible health plans and health savings accounts, you may be able to get better coverage for the same or less money.