| One of the biggest financial risks that people can take | | | | the out-of-pocket maximums are usually lower, and |
| these days is to go without health insurance. Many | | | | sometimes are the same as the deductible. Individuals |
| people find the astronomical costs of purchasing | | | | also have the opportunity to use Health Savings |
| individual health insurance simply impossible to afford, | | | | Accounts, which are tax-favored, to fund the |
| leading many to abandon the search and go without | | | | increased deductible amount. |
| this all-important piece of their personal financial picture. | | | | The biggest and most important draw to these plans, |
| Many reports have shown that the biggest reason for | | | | beyond the tax-favored treatment of the expenses, is |
| personal bankruptcies in the United States is medical | | | | the reduced premium costs. By exchanging higher |
| expenses. With such a large risk, it's vital to thoroughly | | | | deductibles for reduced premiums, consumers can |
| understand the issue, and exhaust all possible avenues | | | | save as much as 50 to 75 percent off the premium |
| of cost savings, before deciding to skip coverage | | | | cost of a traditional, low-deductible plans. |
| altogether. | | | | Another way to save on health insurance costs is to |
| Although most people think solely of traditional plans | | | | purchase a health indemnity plan. These don't work like |
| when they hear the words "health insurance," in reality | | | | traditional or high-deductible plans; they are more like |
| a few options exist beyond the traditional 80/20 plan. | | | | reimbursement plans. They will typically reimburse a |
| (An 80/20 plan refers to coverage where an individual | | | | person for certain expenses, up to varying limits. Some |
| pays all the costs up to a relatively low deductible, and | | | | indemnity plans work by covering a certain, and usually |
| then the plan pays 80 percent of eligible expenses, up | | | | limited, amount of visits or procedures, in a given year. |
| to the out of pocket maximum amount, after which the | | | | Most carry a catastrophic coverage provision, which |
| plan pays all eligible expenses.) | | | | lessens the risk considerably, and the premiums are |
| One of these options is a high-deductible plan. With | | | | again reduced substantially when compared to |
| these plans, the deductibles are much higher, usually | | | | traditional plans. |
| into the thousands of dollars instead of hundreds, but | | | | |