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When It Makes Sense To Choose A High Deductible Health Plan

texas health insuranceMany Americans are finding themselves without employer-offered insurance benefits.  Whether self-employed, unemployed, a student or between jobs, every day people are being forced to reevaluate their Texas health insurance options.  And with the recent passage of health care reform, things are even less clear than before.

One option to consider if you’re on a budget and in good health is a high deductible Texas health insurance plan.   With a high deductible health plan (HDHP), you simply pay out-of-pocket for medical expenses until your high deductible has been met. Once you meet your deductible, the plan will cover you for anything catastrophic, similar to a traditional major medical plan.  If you’re generally healthy and don’t require frequent doctor visits or prescriptions, all you pay each month is a low premium, yet you have coverage in place to cover an accident or major medical emergency.

People with HDHPs can also contribute to a Texas health savings account, which is a savings account that allows you to contribute and withdraw money for qualified medical expenses without being taxed. Similar to an IRA, a health savings account is an investment, allowing you to grow your wealth while preparing for future medical expenses.

A common question regarding HDHPs is: “Why should I pay a monthly premium for health care coverage instead of just saving my money to use when health care needs arise?”

Texas health insurance companies generally offer discounted rates for services rendered by their network of health care providers.  So having health insurance—and therefore a network of providers—automatically gives you negotiated rates on health care.  You can typically save between 30 and 60 percent on medical costs and also have the peace of mind to know that it will cover you for catastrophic events, usually up to three to five million dollars, or up to the lifetime limit.

If you are one of the many Americans who wants or needs to save money, does not require frequent doctor visits or prescriptions, and wants coverage in case of a major medical need, a high deductible Texas health insurance plan may be right for you.

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