How to Select a Health Insurance Deductible

Choosing the right health insurance deductible is a tricky business, riddled with pitfalls, but for the savvy consumer, with a little bit of know-how, the right health insurance plan and a deductible that works for you and your family won't be hard to find.

Things You'll Need

• Information on all insurance plans and deductibles available
• Pencil
• Paper
• Last year's medical expenses, if available
• Your family's monthly budget

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Instructions

• 1

  If possible, compare insurance plans and providers before you compare deductibles. Some health insurance companies provide a better list of services in smaller deductible plans than other companies. However, if your health insurance is provided by your employer this may not be an option.

• 2

  Look at what's offered, and write a list of pros and cons for each level of deductible. List information like co-payment amount for each level and the percentage of the benefit for each type of care, such as office visits, emergency care and prescription drug benefits.

• 3

  Figure out how much the plan will actually cost you for a year. Add the monthly premium for 12 months and the cost of the deductible at each level. Which plan ends up being less expensive?

  Remember to take into consideration familial factors. If a family member has a ongoing condition, such as asthma, diabetes or severe allergies, which can result in a lot of medical expenses, a lower deductible may be a safer option. If each member of your family typically needs to see the doctor only once a year for a check-up, a higher deductible for emergencies may be more acceptable.

• 4

  Decide how much you can afford. After you've decided which plan looks most appealing from a savings perspective, decide if you can afford the monthly premium each month. Sometimes, as much as you want the lower deductible plan, it's just not realistic with your monthly budget.