insurance health

Rainy Day Coverage

High-deductible medical insurance can lower your premiums, but watch
out for the loopholes
C hoosing insurance coverage is essentially betting on your health,
so I was nervous when my sister told me she might try to save money
by switching to a high-deductible plan. With high-deductible
(aka catastrophic) insurance, you pay low premiums and cover most
of your own routine medical care. If your expenses mount higher than
the deductible ($2,000 to $5,000, on average, depending on the plan),
insurance kicks in to cover either all or a major portion of your
bills. These policies aren't for everyone, but they can be a good
deal for the right consumer.
If you have employer-sponsored health insurance, you're probably
re-evaluating your coverage right now during open enrollment. Take a
good look at a high deductible: In a recent survey, 42 percent of
companies said they plan to increase employee contributions in 2010.
Here's how to figure out if you should go with one of these
increasingly popular plans.
That means less money out of your paycheck, and, if you're worried
about a layoff, a lower COBRA payment. According to comparison site
ehealthinsurance.com, trad­ing a $1,000 deductible for a $2,500
deductible can shave 25 percent off your premiums. A $5,000 deductible
can save another 20 to 25 percent.