Can you buy health insurance 0 deductible? What are its advantages? What do you need to know before you purchase this type of plan?
Let’s dive in.
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Is It Possible to Buy Health Insurance 0 Deductible?
Yes, you can get affordable insurance that has no deductible. This plan has no minimum balance before the insurer will pay for your healthcare expenses.
However, this type of plan has higher premiums. That’s why it is ideal if you visit your doctors frequently or if you are using several medications.
If you need to undergo a medical procedure that costs $2,500, your health insurance company will pay for the full rate starting from the day your policy is activated.
On the other hand, if you need to undergo the same medical procedure but your health insurance plan has a $1,000 deductible, you will have to pay the $1,000 deductible before the health insurer will start contributing to the cost of the procedure.
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What You Must Know About Affordable Health Insurance with No Deductible?
The big difference between health insurance zero deductible and other types of health plan is when the insurance company begins paying you for covered healthcare services.
As mentioned earlier, a zero deductible plan can start right away. You don’t have to meet a certain amount before the insurer begins to start contributing to your healthcare.
With other plans, however, cost-sharing will only start after you have paid the required deductible amount. The timing can significantly affect the overall cost that you need to pay every year for your healthcare.
Even though there are no deductibles, the structure of the plan is still the same as the structure of plans with deductibles. It means that there are still other out-of-pocket costs that you still need to pay for.
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With zero deductible plans, your monthly premiums are higher. However, the cost-sharing benefits can start on day one.
Even though you don’t have deductibles to meet, there are still copayments that you need to pay. This is the portion that you have to pay for when you visit your doctor.
You’re also responsible for health care services that are not covered by your health insurance plan. Before you undergo a medical procedure, you need to check the list of exclusions, if there are any.
What are the Things to Consider Before Buying Health Insurance without Deductible?
When purchasing health insurance, you must remind yourself that there’s no such thing as one-size-fits-all. Not all individuals can benefit from this type of plan, even though there are some benefits associated with it.
- Medical costs. Before you buy this type of plan, you must evaluate your medical costs in the upcoming year. You can benefit from this zero deductible plan if you have ongoing medical problems. Your insurer will pay immediately begin paying for your covered healthcare services.
- Finances. As mentioned earlier, this type of plan entails a higher monthly premium. Despite that, you are protected from higher medical bills. You can also avoid paying for higher out-of-pocket costs. But if you choose a plan with high deductibles, your monthly premium will be lower. However, it can mean paying for larger out-of-pocket expenses.
- Predictability. When you choose this plan, your health care costs will be more predictable. You will pay a fixed amount for the premiums and copayments. In that case, you can avoid unexpected bills.
Is the Deductible the Only Out-of-Pocket Expense you Have to Pay for?
As mentioned earlier, there are other out-of-pocket expenses that you need to handle. These would include copies and coinsurance.
- Copay. It’s a fixed amount that you have to pay for some medical services. The amount can vary. It depends on the healthcare service you received. For example, if the cost of visiting your doctor is $50 and the doctor charges $150 for the service, you will only pay $50 at the time of your visit.
- Coinsurance. It’s the percentage that you have to handle for a certain medical service. If the coinsurance is 70/30, you’ll be paying 30% of the total bill and the insurer will handle the 70%. Since you don’t have a deductible to meet, your insurer will immediately take care of the percentage.
How Popular is Health Insurance with No Deductible?
It’s the least popular because of its higher monthly costs. Most individuals prefer high-deductible plans.
Is This Plan Right for You?
If you are expecting high medical costs, then having this type of health insurance can be an ideal choice. You can save money in the long run. Then again, it’s not right for everyone. There’s always a trade-off in costs.
Health insurance 0 deductible is a type of plan that doesn’t require any deductible. You don’t need to meet a deductible before your insurer starts to pay for its part. However, there’s always a trade-off in costs. You have a higher monthly payment. Plus, there are other out-of-pocket expenses you need to handle. But since you’re paying a fixed amount, your overall healthcare costs become predictable.
Are you looking for health insurance in the Philippines? Find out here the cheapest HMO in the said country.
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