Risks of Choosing High Deductible Health Plans – Pitfalls to Avoid
As healthcare costs continue to rise, more and more people are turning to high deductible health plans (HDHPs) as a way to save money on their premiums. While HDHPs can be a great option for some, they come with their own set of risks and pitfalls that consumers should be aware of before making the switch. In this article, we’ll explore some of the most common risks of choosing HDHPs and offer tips for avoiding these pitfalls.
What is a High Deductible Health Plan?
Before we dive into the risks of HDHPs, it’s important to understand what they are. HDHPs are health insurance plans that have a higher-than-average deductible, which is the amount you have to pay out of pocket before your insurance kicks in. The deductible for an HDHP can be anywhere from $1,400 for an individual to $2,800 for a family, which is much higher than traditional health plans.
The Risks of High Deductible Health Plans
While HDHPs can be a good option for people who are generally healthy and don’t need to use much medical care, they come with some significant risks that consumers should be aware of. Here are some of the most common risks of HDHPs:
1. High Out-of-Pocket Costs
The most obvious risk of HDHPs is that they come with high out-of-pocket costs. Because you have to pay your entire deductible before your insurance kicks in, you could end up with a large medical bill if you need a lot of healthcare in a given year. This can be especially challenging for people with chronic conditions who require ongoing medical care.
2. Limited Coverage for Preventive Care
Many HDHPs have limited coverage for preventive care, such as annual physicals and routine screenings. While these services may be covered at no cost under traditional health plans, they often require you to meet your deductible before your insurance will cover them under an HDHP.
3. Limited Network of Providers
Some HDHPs have a limited network of providers, which means you may not be able to see the doctor or specialist you want. If you have a preferred provider or specialist that is not in your plan’s network, you may have to pay out of pocket for their services.
How to Avoid Pitfalls of High Deductible Health Plans
While HDHPs come with some significant risks, there are steps you can take to avoid these pitfalls. Here are some tips for making the most of your HDHP:
1. Take Advantage of Preventive Care Services
While some HDHPs have limited coverage for preventive care, many still cover these services at no cost. Make sure to take advantage of these services when they are available to prevent costly health problems down the road.
2. Plan for Higher Out-of-Pocket Costs
Because HDHPs come with higher deductibles, it’s important to plan for higher out-of-pocket costs. Consider putting money into a health savings account (HSA) to help cover these costs and take advantage of any employer contributions to your HSA.
3. Shop Around for Providers
If your HDHP has a limited network of providers, make sure to shop around to find a provider or specialist that is in your plan’s network. You may also want to consider asking your doctor or specialist if they offer discounted rates for patients with HDHPs.
Conclusion
High deductible health plans can be a good option for some, but they come with their own set of risks and pitfalls. By understanding these risks and taking steps to avoid them, you can make the most of your HDHP and ensure you’re getting the care you need without breaking the bank. Remember to take advantage of preventive care services, plan for higher out-of-pocket costs, and shop around for providers to make the most of your HDHP.
