Consider a higher deductible plan

Your monthly rates for your health plan are based on your age and location, as well as the medical plan you choose. Each year, you experience a small rate increase simply because of your age. One way you can offset rate increases is to choose a higher-deductible plan.

Won’t a higher-deductible plan cost me more in the long run?

Not necessarily. You typically pay toward the deductible on your PPO plan only when you receive a medical procedure that isn’t covered by your copay or preventive care benefits. If you are in good health and your healthcare typically consists of doctor’s office visits and preventive care, you may not even use your deductible. If that’s the case, you could likely save money with a higher-deductible plan.

1. Your monthly payment will be lower with a higher-deductible plan.
2. Your copays and coinsurance percentage could remain the same or cost only a little more.
3. You’ll still pay only a copay for regular doctor visits.
4. You’ll still receive your preventive care benefits at no cost to you (per the Preventive Care Schedule).

Consider this scenario to see how moving to a higher-deductible plan might help hold down your total healthcare spending in 2012. The following example is for a 40-year-old minister who has family coverage and lives in the Dallas area:

As you can see, if this minister remains in the Health Choice 500, his rates will increase for 2012. But if he moves to the Health Choice 1000, he can lower his rates for 2012. He will need to take into account the higher deductible, annual coinsurance maximum and specialist copays. But his primary care copays and his 80% coinsurance level will remain the same, so it could be a good move.