If you are young, healthy, and have not visited the doctor more than twice a year, you may be interested in changing your old health insurance plan to a high deductible health plan (HDHP). An HDHP is a better choice for you because it offers lower monthly premiums in exchange for a higher deductible. A HDHP is often paired with a health savings account (HSA) that allows you and/or your employer to contribute tax deductibles, which you can later use to pay for your medical expenses, tax free!
Before you consider switching plans, it is important to remember the purpose of health insurance. Health insurance is a way to cover you financially in the event of something that would require a high cost, not a way to cut costs that might occasionally come up within a given year. So, is an HDHP the best insurance plan for you? Yes, if you are under 50 years old, in good health, and have no serious documented health complications, than you are most definitely a candidate! With an HDHP, your monthly premiums will be significantly lower than traditional plans such as, HMO or PPO plans. Additionally, if your employer offers an HSA with their HDHP, anything you do not spend will roll over every year.
Contact us at THW Insurance Services if you would like to hear more about the advantages of switching to a High Deductible Health Plan and a Health Savings Account.