High Deductible Health Plan Disadvantages

High-deductible insurance is a health insurance option that has been receiving more attention in recent years. The insurance premium is lower, since a high deductible must be met before the health insurance kicks in. One you meet the deductible, the insurance should cover all of your costs and procedures 100 percent for the rest of the year. However, the plan may not be for everyone.

High Deductibles Can Add Up and Be Difficult to Pay

• If you have a large family, the high deductible for each individual may be too much for your family to handle. Even if you choose the $1,000 deductible, the lowest one available, it means you may be paying out-of-pocket at the beginning of the year to cover everything from minor doctor's visits to major procedures. However, you can use a Health Savings Account and contribute money to it tax free to help save to pay for expenses until you meet your deductible. Additionally, once you have hit your deductible, you will not have any additional out-pocket-costs for the entire year, which means no co-payments or co-insurance.

Less Likely to Seek Preventive Care

• It may be more difficult to seek preventive care when you have to pay for the costs of the visit out of pocket. Additionally, patients may not go into the doctor as early as they would have if they only had to pay a small deductible. Early treatment of illness and early detection of serious diseases such as cancer can be lifesaving. If you would not be as likely to get your annual physical done if you have not met your annual deductible, this may not be the best plan for your situation.

Lookalike Plans

• Several insurance companies offer hybrid plans that have an initial high deductible that must be met before insurance coverage begins, but then you still have to pay co-insurance and co-payments once you have reached the deductible. These premiums are similar to a real high-deductible plan, but you pay a lot more out of pocket. These plans do not qualify for the Health Savings Account, because they are not true high-deductible insurance.

Hidden Loopholes and Benefit Limits

• Many plans will limit the amount of coverage you can receive annually and in your lifetime. If the limits are too low and you have a catastrophic event, the insurance may not cover all of your medical costs. Other problems may come when the insurance limits the number of doctor's visits you can have, or the types of procedures it covers. You should check to be sure your plan does not have these limits.