No-deductible health insurance pays for medical expenses upfront without requiring an annual payment from the subscriber, but it generally costs more. Employer-based plans offset the higher cost for employees, while high-deductible plans have lower premiums but require payment up to a certain limit. Insurance companies are changing their policies in response to healthcare reform.
No-deductible health insurance is a type of health insurance that does not include an advance payment required by the enrolled member each year. Instead of making the subscriber meet a minimum balance, no-deductible health insurance means that the health insurance company will make payments upfront, paying for doctor visits, emergency care, or other events. The downside is that having this type of policy means that those receiving the insurance will generally pay more than they would if it included a health insurance deductible.
Many non-deductible health insurance plans are employer-based health plans. There are many key differences between most employer-based plans and most purchased health insurance plans on the market. One main difference is that employer-based plans are forced to cover active employees, where self-purchase plans can deny an applicant for many reasons. With employer-based plans, the higher costs for the individual subscriber, which is the employee, are offset by the fact that the employer often pays part of the cost of the policy.
On the other side of the spectrum, some buy-your-own plans are the opposite of non-deductible health insurance. High deductible plans have the subscriber pay up to several thousand for any medical care in any given year. The plus side of these plans is that premiums tend to be lower, and if health care costs exceed a certain limit (the deductible plus other related costs) health insurance will pay additional costs, allowing families to estimate their annual out-of-pocket maximum cost and budget for medical emergencies. These types of high-deductible plans are called “catastrophic” health insurance plans.
In a rush to anticipate potential changes related to recent healthcare reform, many insurance companies are changing the way they search for policy deals for consumers. Some of the newer plans may be no deductible health insurance, and some may include significant deductibles. Both types of options will appeal to a certain type of consumer or household, depending on how people like to budget for their medical expenses.
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