While we will first briefly touch on what a high-deductible health plan is, we’re going to point out below how different it is from other plans, even when it comes to enrolling.
What Is A High-Deductible Health Plan?
This type of insurance plan has a low premium and, as its name states, a high-deductible.
Practically speaking, this means the monthly payments are nice and low, but the flipside of this is, when medical care is needed, more of the expense comes from your pocket before the plan starts covering the costs.
As a final note, this type of plan does cover some level of preventative care. This is required in the Affordable Care Act and covers certain screening tests, immunizations, etc.
The Differences In The Enrolling Stage
Firstly, there’s a difference in who will be enrolling in this type of plan. Brokers have the job of finding the right type of plan to fit each person, and they’ll be looking for someone who states they want to pay as little as possible on a monthly basis. Furthermore, they’ll inquire about the likelihood of injuries and illnesses, and if the chances of these are low, then a high-deductible plan is something a broker should recommend.
Secondly, one of the main differences when enrolling in a high-deductible health plan is the other things on the table.
With low deductible plans, there isn’t any option for supplemental-type plans to go alongside them. However, with high-deductible plans, there’s a wide array of options. Each of these has to be enrolled in as well, though, on top of enrolling in the main high-deductible plan itself.
This does add more to the enrolling process, as these supplement plans have to be offered, chosen, and the paperwork for them filled out. Still, as this results in an overall health plan being more customized to what the individual actually needs, it is often well worth the extra time and effort.
What Supplementary Plans Can Be Used?
Most supplementary plans are able to be paired with a high-deductible plan. The main options are dental and vision plans for things not usually covered by the average plan, and Medigap plans, which includes our hospital insurance GAP plan, are all great choices.
A health savings account (HAS) is also a popular option. This type of account is used solely for medical expenses. Both the employee and employer are able to add funds into it, which makes it a great sort of bonus employers can offer as an incentive for those who work for them, especially as they help reduce taxes on both sides.
