Stop loss, co-insurance, and deductible are three main factors that you need to take into careful consideration while comparing PPO and high deductible medical insurance plans. Both these plans have deductibles. However, the amounts vary dependant on the kind of plan that you simply choose. The biggest advantage of paying high deductibles is that it reduces your premium. Higher the quantity that you pay as deductible lower would be your premiums. However, there are several downsides too, which have been described below. That may be the good reason that many people would rather opt for PPOs regardless of whether they should pay a slightly higher premium.
Choice Of Hospitals And Doctors
You must know what PPOs have been to perform a thorough comparison between PPO and high deductible medical insurance plans. PPO is short for Preferred Provider Plans, which means which you can select from a particular network of doctors classified by the policy. The doctors on this network sign a binding agreement while using insurance companies, as per which they should offer their services to policyholders at a discounted price. On the other hand, plans with high deductibles are generally HMOs (health maintenance organization plans), which means that you just get the liberty to decide on any doctor or hospital you would like.
In an increased deductible health care insurance plan, you are unable to place smaller claims. That is the very reason insurance providers happily slow up the premiums substantially when one opts for a higher level of deductibles. The higher the deductibles are, the lower are your probability of reaching a predicament where you can place a coverage claim. Many individuals pay high deductibles and keep making a payment on medical costs out of their pocket his or her expenses never cross the deductible amount. So, high deductibles are certainly not often a good thing. On the other hand, PPOs can be a better alternative in this regard, because they take a low deductible and you can always file your claims regardless of how small they may be.
Look At Your Health
When you are looking for choosing between PPOs and high deductible medical health insurance plans, you must first examine your health condition – look at your track record. Are you suffering from any specific medical condition? Do you seek medical service frequently? If you enjoy a sound body and consume a fit lifestyle, you had better consider finding a policy with a top deductible. There are several benefits to doing that. You can use this opportunity to develop a health checking account, that may present you with valuable tax shelter. Besides that, when you use those funds to fund medical expenses, that amount will probably be thought to be tax-free.
If you never prefer any specific doctor or hospital, it is usually safer to consider PPOs instead of high deductible medical insurance plans. Always remember, the best insurance plan for you personally may be the one that provides all of your specific needs. So, concentrate on researching your requirements decide accordingly.