Why I Like Health Insurance Deductibles

Deductible plans allow greater patient choice. Many health insurance plans that depend on co-pays only (with no deductibles) control insurance costs by turning your care over to a primary care doctor. You must go to that doctor or clinic in order to have any services covered. If you need to see a specialist, you need permission (or a referral) to go. Health insurance plans with deductibles, however, usually don't require referrals for specialists. Switching doctors is also easier on plans with deductibles.

Health insurance plans usually cover wellness benefits without a deductible. Plans with deductibles usually cover annual check-ups without a deductible. For healthy people, this can be ideal since all they really need is an annual check up. Just because a plan has a deductible doesn't mean you will be paying it each year.

Plans give a premium break for being healthy. Insurance companies like deductibles because they reduce the risk of receiving lots of little bills (little medical bills can be $1,000 or more). After all, even $1,000 bills can add up to lots of money fast. So a good deductible plan can have a lower premium than one that strictly uses co-pays.

Health insurance coverage plans give the member more control over money spent for health care. Lower premiums mean that members keep some of the money that would normally go to pay for health care (theirs or someone else's). Smart money managers always pair deductible plans with an emergency savings account. Any money saved in premium should go into this account to cover the deductible and co-insurance for the times you do need more than an annual exam. The bonus is that banks usually pay interest on money in a savings account. High deductible plans usually come with the bonus of a tax-free Health Savings Account (HAS) at a bank. Other deductible plans allow you to stretch your money by crediting any deductible paid for services at the end of the year towards the next year.

A good broker is always an asset in finding the best plan if you're self-employed. No matter what plans are available, never be afraid to check all of your options, even deductible plans.

Miriam Sirag is a sometime world traveler who was a customer service representative for a major insurance company and now writes articles for Good Neighbor Insurance. Good Neighbor Insurance represents 10 international health insurance companies and provides international health and travel insurance for every country in the world.