WEDNESDAY, APRIL 23, 2014
The health insurance world has changed with the affordable care act. Whether you are in Texas, Iowa, Nebraska, Minnesota, or even South Carolina or Wisconsin. With costs and plans being more fixed your purchase decision is now shifting to how you spend your money. For instance when comparing plans if a plan has a deductible of $2000 a co-insurance of 10% capped at $6350 and a premium of $300.00 a month. Your total out of pocket for the year could be $9950.00 (worst case scenario). If you typically spend $5k on prescriptions and medicine (before insurance). That plan could cost you $3600 (annual premium) + $2000 (deductible) +Co-insurance (using 20% or $3000 x .20) of $600 meaning a total insurance expense for the year of $6200. At the same time if another policy has $1500 deductible with same co-insurance and $50 more a month in premium. The costs on $5000 in claims in a year and premium would look like this.
$4200 in annual premium + $1500 in deductible +Co-insurance (still 20%) $700 =total policy cost of $6400 (which while a lower deductible is not a better deal. As you can see health insurance has now transformed into how do you want to manage your health expenses. So as you go through the year you may want to track your explanation of benefits and your claims so that you can have a solid sense of what might be the best deal for you.