High vs. low deductible: How to choose
When deciding on the best health insurance policy for you and your family, it is important to weigh all of your options. The amount of your deductible, the amount you must pay before an insurance company’s payments begin, will shape how much you pay in premiums and how much your insurance company will contribute toward medical bills.
A higher deductible means a lower monthly premium rate which can save you as much as $100 per month. Health insurance plans with a higher deductible will often cost you considerably less on a monthly basis, so it may be the most affordable option for some, resulting in more money left in your pocket.
If you are concerned about health emergencies or your family frequently visits the doctor, a low deductible may be the better option. With your deductible set low, the insurance company will cover more of your medical bill. However, this also means your monthly premium is higher to compensate for the difference. If you can budget for unexpected expenses and have a healthy financial safety net in place, this may be the best option for you. If you’re like many Michigan families who struggle to put away savings each month, you may want to consider the higher deductible to avoid large expenses due to health emergencies.
For example, a typical family of four with no surprise emergency room visits, procedures or tests, can save money monthly with a lower premium and higher deductible rate. In contrast, a family of four who needs to take a child to the hospital regularly may save more with a lower deductible amount to begin sharing the cost with their insurance company quicker.
Still confused? Watch this video from Blue Cross MyBlue to further answer the question of which type of deductible is best for you.
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