How a Deductible Works

The deductible is the amount you pay towards your medical bills every year before the insurance company begins to pay under your plan. Ohio health insurance companies offer various types of plans with different deductibles. There are also plans that don’t have a deductible.

Suppose you purchase an Ohio individual health insurance plan with a $500 deductible. This means that you have to pay $500 on your medical bills for the year. Suppose you run up an ER medical bill of $1200. If your plan covers 80 percent of your ER visits, you would have to pay the remaining 20 percent, which is your coinsurance.

>> Your total ER bill: $1200
>> Your deductible for the year: $500
>> The balance: $700
>> Your plan meets 80 percent of the balance: $560
>> You have to meet the remaining 20 percent: $140
>> Your total cost ($500 + $140): $640

As you have met your deductible of $500 for the year, this means that your Ohio health plan will meet 80 percent of other covered healthcare expenses for the rest of the year, except for copays.

High Deductibles Mean Low Premiums

Typically, an individual health insurance policy with a high deductible will have a lower premium. This is because the policy holder is responsible for sharing a larger proportion of his medical expenses and the insurer has to pay only after this amount is met. So if you want to purchase a health insurance plan with a lower premium, choose a high deductible Ohio health insurance plan.

Plans with Different Deductibles

Plans with different deductibles are available and you can choose one based on your requirements and budget. For instance, Medical Mutual, a leading health insurer in Ohio, offers Elite without office copay, a plan with a choice of several high deductibles.

Elite features network plans with deductibles ranging from $2500 to $20000, and non-network plans with deductibles ranging from 5000 to 40000. Services covered include routine doctor visits, preventive services, outpatient and inpatient services, mental health and substance abuse, prescription drugs, and additional services such as ambulance, home healthcare, hospice, organ and tissue transplant and durable medical equipment.

Optional dental, vision, maternity services, and life insurance coverage are also available under this plan.

A high deductible plan is ideal if:

• You can afford a high yearly deductible
• You do not expect too many doctor’s office visits and want coverage for serious illnesses and emergencies
• You want comprehensive coverage with a lower premium

Contact a reliable licensed health insurance broker for more information on how high deductible Ohio health insurance plans can help offset the cost of your healthcare.

Employers of smaller and larger businesses alike are looking ahead to what they will be facing in 2014. Both can say this: prices will not be coming down. As Brynn Popa, director of the Council of Smaller Enterprises in Northeast Ohio (COSE), said, “The cost of healthcare continues to rise with or without healthcare reform.” This will certainly continue to be a challenge for those looking for Ohio health insurance. In fact many who own small businesses are struggling with higher premiums but still want to be able to supply health insurance for their employees. Large businesses especially find that offering health insurance is a competitive advantage that assists them in keeping good employees on their staff. But with single employees now paying as much as 20 percent of their total premium and families paying up to 28 percent, it is no surprise that employers are struggling to keep insurance benefits for employees. Currently the annual median cost for premiums is $5,052 for a single person and $13,140 for a family. And nothing appears to be going down in price.

In fact for many younger adults the premiums have a good chance of going up as more and more elderly and less healthy individuals begin getting health insurance either for the first time or now an artificially lower price. The Affordable Care Act will lessen the ability for premiums to be higher for those who are high-claims cost candidates. Some individuals may be able to qualify for subsidies if they earn up to 400 percent of the federal poverty level. This amount would mean $92,200 a year for a family with four people. Those with smaller businesses will weigh their options to see if the open market is truly a better place for their employees to find Ohio health insurance with the help of subsidies.

It does appear that businesses will continue to stay invested in their employee’s health through wellness programs and other programs that encourage weight loss and promote general health. Wellness and weight loss programs are positive examples of programs that have helped to lower healthcare costs and companies are wise to use them. Another positive note is that the insurance premiums are expected to rise 6 percent as opposed to 7 or 8, which has been the norm across the country these last five years. This is most likely linked to the programs that companies have started to increase health and bring down premiums.

Whether you have Ohio health insurance or insurance from any state, the truth is insurance prices are only going to continue rising. Planning ahead with some extra savings and continuing to live a healthy lifestyle are the best options available to date. It is also invaluable to seek experienced assistance from a broker when looking for your best option.