Shhhh. . . did you hear that?
Quietly–maybe even while you were sleeping–a revolution in the insurance industry began to occur early last year. Old ideas were abandoned, new ideas adopted, and new choices came into focus.
Now, I know what you’re thinking: You’ve heard all you can bear about the Affordable Healthcare Act and its wonders. Well, that’s not what this post is about. It’s something about which you may have never heard a peep.
That’s it, in two words.
Sure, it has a longer name on the marketing materials, and someone stayed up all night to think of what to call it, but we’ll just call it what it is.
Something new. A new choice for your family protection portfolio, and even more necessary in today’s high deductible landscape. Here’s how it works:
The old way of doing things is lost to the market now–probably forever–but it involved an “up front” approach to healthcare via higher coverage and higher premiums. The deductible was low, and co-pays kept office visits to a predictable cost. Those same premiums, however, never really stopped getting higher and higher each year. Supplemental coverage was difficult to justify with such high cost of coverage.
The new way keeps premiums stable–or at least is supposed to–while taking some risk on the back end that we are generally healthy except for unexpected occurrences. That works well for some, but isn’t an accurate picture for everyone. Deductibles soared to share some of the cost (and risk), while the occasional supplemental plan could fill in a gap or two. Overall costs dropped, but only if utilization was low.
The average amounts for workers with an aggregate deductible for family coverage are $1,743 for HMOs, $1,854 for PPOs, $2,821 for POS plans, and $4,079 for HDHP/SOs -Kaiser Family Foundation 2013 Employer Health Benefits Survey
“With great deductibles come great responsibility”. –Spiderman’s Aunt
Enter Deductible Insurance. Call it a hospital buy-down, catastrophic confinement coverage, a safety net. Call it whatever you like, but imagine having your entire personal deductible (up to $3000 per event, per person) paid in cash after a hospital stay. Accident, illness, childbirth, on-the-job injury, whatever the case may be. Your out of pocket may even be eliminated altogether, depending on your health plan and coverage. Coupled with an FSA or HRA (if your employer is that awesome), it gets even better!
Imagine knowing that your bottom line is covered, no matter what happens. With deductible insurance it is possible to have that kind of peace of mind. Relax, it’s covered. There is a better way.