When you buy a car, the first thing that comes to mind is typically the price — your monthly payment. Other costs, such as motor insurance, gas, and maintenance, might put a strain on your budget. The total cost of ownership is determined by the car you purchase and the associated charges.
It’s the same way with health insurance. Other charges may significantly impact your household budget if you only look at your monthly payment.
Total annual costs
It’s a good idea to consider your entire annual health insurance expenditures.
- Premiums: This is the amount you pay your insurance company each month, referred to as your “monthly payment.”
- Deductible: The amount you must pay before the insurance company begins to pay its portion of the claim. With a $900 deductible, you are responsible for the first $900 of charges. The corporation then begins to pay its part.
- Copayments and coinsurance: What you pay (in terms of a dollar amount or a percentage of costs) once your insurance company begins to pay.
Note: Preventive care is included in all plans (including child checkups and vaccinations, well-woman visits, and more). Most plans also cover some services before your deductible is met, such as discounted medicines, regular exams, and programs to help you manage chronic illnesses like asthma or diabetes. From the start, network providers offer you lower rates.
The care you utilize determines your total annual health insurance expenditures
- If you don’t intend to use much care during the year or have insurance primarily to protect against costly expenses and preventative care, paying attention to your monthly premium may be the best option for you.
- If you expect to utilize regular or extensive care, a higher premium plan may be a better overall deal. Deductibles, copayments, coinsurance, and out-of-pocket limits are typically lower in plans with higher premiums. As a result, even if you pay more each month, you may save money in the long run.
We can assist you in calculating your total healthcare costs
- You can choose a degree of care you anticipate you’ll need for the year when you preview plans and costs or shop for insurance.
- We’ll offer you “total expected yearly expenses” — including premiums, deductibles, and copayments/coinsurance — for each plan when you compare them, according to the degree of treatment you expect. The actual expenses of health insurance can then be compared side by side.