Should you go for a higher deductible?
While everyone wonders what is coming with the implementation of the new health care law, insurance companies are getting creative.
A couple of decades ago, managed care was all the rage. HMO’s, PPO’s, we all learned the lingo.
But health care reform is bringing some new products to the market, and one is particularly attractive to small companies.
But it has it’s upside and downside.
It’s called a high deductible plan.
The concept is simple.
To keep costs down, a low premium is swapped for a high deductible.
The plan is very affordable for the employer, and for younger employees, it’s like have a major medical plan.
And for high earners who can sock away the deductible cash, it’s not a problem.
The real issue is older folks of modest means. A Journal of Internal Medicine study showed that lower income workers on these plans put off care they can’t afford, or skip medicines.
And that costs more in the long run.
The new reform law creates insurance exchanges in 2014, and the high deductible plans can be sold there at that time.
Experts say, these plans are designed to keep you from being ruined by medical bills, not for day to day medical costs.