Comments on: Comparing Deductible, Co-Pay, and Co-insurance When Looking at Your Health Insurance Benefit Options

By: Hannah

Hannah — Tue, 23 Nov 2010 18:58:05 +0000

The changing dynamics of the health field make health insurance a really smart option. The dental field is a different matter. Typically with dental insurance, premiums are high, deductibles are high and yearly maximums are low. Unless your company pays for your dental insurance, a dental discount plan is usually a better option.

By: TSWhite

TSWhite — Wed, 08 Sep 2010 19:52:57 +0000

One of the main problems of a high deductible is that it doesn’t allow for quick access to coinsurance. you have to meet the designated amount before you start to realize the benefits of the plan. Sure, the premium is lower, but for lower income families it is sometimes hard to come up with say $200, $300 or $500 before your insurance kicks in.

By: TSWhite

TSWhite — Wed, 08 Sep 2010 19:49:53 +0000

that’s also incorrect. that only happens in the plan is self insured. if it’s fully insured; coinsurance means the insured pays a percentage like 20% and the plan pays 80%. in regard to how premiums are paid – a large majority of employers split the cost of premiums with employees…

By: TSWhite

TSWhite — Wed, 08 Sep 2010 19:47:58 +0000

I think it’s misleading to say that a co pay and co insurance are basically the same thing. A co pay is a flat dollar amount that does NOT apply against your deductible or out of pocket maximum. It a convenient privilege of insurance plan. Co insurance on the other is a percentage of the total bill that is payable by the insured person that usually kicks in after the deductible and applies to the out of pocktet maximum. That’s a huge different. With group plans; co pay features often drive the utilization on the plan and are limitless meaning that you never stop paying them. Co insurance based plan put a limit on the amount that you pay out of pocket and these are the plans that show their true value when insurance is most needed. Co insurance is a way to stop the insured from nickel & diming the plan or abusing it.

By: altruance

altruance — Tue, 23 Feb 2010 12:05:22 +0000

In general we find that the high deductible plans typically only make sense if you are young, healthy or wealthy. When setup right a high deductible plan couples with a HSA can really save money on health insurance premiums while providing a nice tax break. Most people rush into buying health insurance because they do not want to spend a few hours getting comfortable with the various plan options and confusing terms. A few hours on the front end can really help in making sure that you get a plan that is both afforable and meets your needs.

http://www.altruance.com/2010/02/five-tips-for-affordable-health-insurance/

By: The Weakonomist

The Weakonomist — Fri, 13 Feb 2009 03:53:52 +0000

The simple fact that the system is so complicated and confusing is a testiment to why we need some reform to the system.

Thanks for the guide though. My employer offers nothing short of 14 plans.

By: Make Your Own T Shirt

Make Your Own T Shirt — Sat, 03 Jan 2009 09:54:06 +0000

Coinsurance is a type of insurance in which the insurer and the insured split risks with each other.

By: college student

college student — Fri, 07 Nov 2008 17:43:45 +0000

Thanks so much for this. I’m graduating college soon and have to look at the insurance options of potential employers. I discovered that I had no idea how insurance worked, even though I knew I needed to get it! P.S. I love this blog

By: pays to live green

pays to live green — Thu, 06 Nov 2008 17:19:07 +0000

Good look into deductibles and co-pays. In my opinion, on less risky things, a higher deductible is the way to go. If you save some of the money as the previous commentor said, you can save up in case something happens. If it doesn’t, the money is all yours.

By: Beyond Paycheck to Paycheck

Beyond Paycheck to Paycheck — Thu, 06 Nov 2008 14:18:32 +0000

Great summary, Jeremy. I’ve found that many people have a bias towards keeping co-pays and deductibles low so they don’t have any unexpected large bills.

While it depends on your individual circumstance, for my family, high co-pays and deductibles were the way to go. We’ve saved thousands each year in premiums, more than making up the painful $40 co-pays. This strategy requires the discipline of saving – or we’d have been in trouble when someone did have to go to the emergency room a couple of years ago. Another benefit of living beyond paycheck to paycheck can be a comfort in taking the lower premium option.