As you see in the “new world” of health insurance, deductibles are higher than they used to be. When the Affordable Care Act when into effect in 2014, we also saw higher out of pocket maximums, which is really the most important part of the health plan.
It is now not uncommon to see a family out of pocket maximum above $12,000 per year. To offset these higher out of pockets, insurance carriers have created types of plans to offset this.
First let’s start with some types that have been around a while.
- Accident Insurance- this is for any injury or accident and pays a specified benefit. Normally you will select this plan with an amount which is close to your deductible. In other words if you a $5000 deductible, you might select a $5000 accident plan. This would cover your deductible if you were injured. Your major medical insurance would kick in after the deductible so in this case you technically have a $0 deductible, by combining the two plans.
- Critical Illness- this is also a specified benefit plan, used if you were to be diagnosed with Cancer or had severe burns or a heart attack or a stroke. The cash is paid directly to you so if you have say a defined benefit of $10,000 that is what you would collect upon diagnosis.
- Cancer plans- these are similar to the Critical Illness plans, but are limited to Cancer
- Hospital Indemnity- these plans pay again pay a specified amount for every day you are in the hospital. Usually you have the option of selecting a benefit from $100 per day to $1000 per day.
- Bridge Plans- Bridge plans are often times a combination of the above or could they could pay a percentage of inpatient and a lower percentage of outpatient. Sometime these will cover a portion of doctor visits as well.
- Life Insurance with Living Benefits- Another way to maximize your dollars is with a Life insurance policy with living benefits. Most of these plans will come with Critical Illness, Chronic Illness ( long term care), Some might have a short term disability benefit. The best part about these plans is if you never need the living benefits, you still have a death benefit.
Any of these options will help tighten your 2015 health insurance plan. Thanks for reading.