Cheap Florida Health Insurance

Saving Money with High Deductible Health Insurance and Hospital Supplements

When we ask clients if they would have health insurance if they would never have a hospital bill, most of them say “No”.

This means that if they could save the cost of health insurance, they would be willing to pay for their own doctor visits and prescriptions.

This is a very important fact and I would like you to keep it in mind as we continue.

Before I get into this article, let me sum it up for you.

A high deductible health insurance plan when combined with a simple hospital supplement will save you thousands of dollars on health insurance premiums.

In a worst case scenario, the money you save on premiums will more than make up for any out-of-pocket expenses. It is a winning combination that the health insurance companies do not want you to know about.

Deductibles

If you have been on a premier group health insurance plan, you might be used to having a deductible of less than $500. Some of you are completely spoiled and have no deductible at all.

When you got a quote for health insurance, you received quite a shock. Low deductible plans are very expensive. It was the insurance company’s way of telling you that they will punish you for buying a low deductible plan. So, why not take the hint?

 “If I have a high deductible and end up in the hospital, I will have to pay a lot of money out of my own pocket. I cannot afford it.”

This is a valid complaint but it does not have to be true.

Can you buy a low cost plan with a high deductible and still have most or all of your deductible paid if you admitted into the hospital?

Read on for a few minutes and I will show you some actual numbers. I am going to keep this simple because in reality, it is simple.

Example:

The Smith family consists of Male 40, Female 35 and two children 7 and 5. They live in the Tampa area.

Traditional Plan

A $1,000 deductible with a maximum out of pocket (deductible and coinsurance) of $3,000. This plan has co-pays for doctor visits ($35 or $50) and prescription co-pays.

This plan costs $678.23/month.

High Deductible Plan

A $7,500 Deductible with no coinsurance (100% coverage after the deductible). There are no co-pays for office visits but you are still entitled to the PPO rate for a physician visit. So, an office visit will generally run $50 to $75. In other words, you will pay out another $20 to $30 to see a doctor.  Prescriptions are discounted and then covered 100% after the deductible.

The high deductible plan costs $175.47/month.

The high deductible plan will save the Smiths over $6,000 a year
.
What About the Hospital Supplement?

To make sure they do not get hit with a large hospital bill, the Smiths are going to use some of the savings on a Hospital Supplement.

PIC HSA Hospital Supplement with the FHC Rider

The hospital supplement will pay out certain amounts each day you are in the hospital. The longer you are in the hospital the more it pays out.

Here is how much you will receive from the supplement if you are hospitalized. If you were hospitalized for 6 days, the plan would pay out a total of $10,680.

- 1 day in hospital pays insured $1,530
- 2 days in hospital pays insured $2,560
- 3 days in hospital pays insured $4.590
- 4 days in hospital pays insured $6,620
- 5 days in hospital pays insured $8,650
- 6 days in hospital pays insured $10,680

Extra Benefits Included with the Supplement

In addition to the above, the plan will also pay you $100 for an emergency room visit. It also has something called a specific injury rider that pays out fixed amount for various injuries (in addition to the other benefits). For example, it will pay you up to $1,800 for a broken leg.

How Much Does the Hospital Supplement Cost

The total cost for a family (of any size) is $105.73
After paying for the supplement, the Smith family will still save $4765 a year on their health insurance premiums and have no out of pocket costs for any hospitalization more than 4 days.

Summary of Advantages

This method offers a lot of advantages over using a low deductible plan without a supplement.

1. This is first dollar coverage. If you were hospitalized for one or two days for observation and the bill was $3,000, the supplement would cover most of the cost.
2. The premiums on supplements generally stay more or less the same. They do not go up each year. When they do it is a very small amount.
3. You get a supplemental accident plan that will pay you $100 for an emergency room.
4. There is a specific injury rider that will pay you for broken bones, burns, etc.
5. In our example, the family had nearly $4,800 extra in their pocket instead of the insurance companies. Most people will never meet the deductible anyway. Over a five year period they will save nearly $24,000.
6. After 12 months, it will cover pre-existing conditions. Even conditions the plan has excluded.
7. This plan covers maternity with no waiting period.

You can give me a call at 800-272-0512 or send me an email by clicking here.

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