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I get into this discussion a lot with people, the price is too high or it costs too much.  Especially when dealing with health insurance, the biggest objection you get is with cost.  Or is it the price??

You see most people thing the price and the cost are the same thing, but in reality it is not.  I will give you an example.  My wife bought my son a bike at a yard sale.  It needed some work, but she bought it for $20.  Now she brings it home and it needs a new seat.  I get new seat for $12.  There was a problem when the old seat was removed, so we had to go to the bike shop to ask a few questions, they ended up fixing the problem and putting the new seat on for $10.  Shortly after we had the bike we needed a new tire it is a small bike, and we could not find just the tire, we had to get the rim too.  It was used and I do not remember the exact price but I think it was also about $20.  So you see the price of the bike at the yard sale was $20, but it cost me $62.

Now let’s apply the same thought process to health insurance.  You have your premium, that is the price.  When looking at a health insurance plan you need to look at many things.  The deductible, the co-insurance, co-pay, the out of pocket maximum are just a few.  Now the higher the deductible, the lower the premium ( price) the lower the deductible the higher the premium.  You also need to look at the additional benefits that come with the plan, whether it be maternity coverage, or what is your co-pay etc.  At the end of the day, if you have a claim, WHAT WILL IT COST ME?? is the question you need to ask yourself.  Now on the individual market, most clients have between a $2500 and a $5000 deductible.  That usually applies to your hospitalization.  You now need to think, how many times have I been hospitalized in say the last decade?  AND if I go to the hospital what will is cost me.  What am I saving if I go to a higher deductible in premium and is it worth it.  If I go to a stripped down plan ( which I would not recommend, but companies offer limited plans).  If I go to a limited plan to save premium ( again that is the price), what will it cost me if I get heaven forbid, cancer?

 

Just something to think about.

Thanks for reading