What is High Deductible Health Insurance Plan?

High deductible health insurance plan refers to health insurance plan with high deductible rate. Many insurers offer high deductible health insurance plans. According to the rules, every insurance policy buyer that contributes to a health savings account must possess a policy with a deductible worth at least $1100. If your health policy covers the family members, your coverage must worth at least $2200.

The deductible pays for all kinds of health expenses. Examples of health expenses covered by a deductible are visits to clinics, drug prescription and etc. Some insurance companies don’t include cost of preventive services in the deductible. If you have a self medical coverage policy, your expenses cannot exceed $5,500. For family coverage policy, the medical expenses cannot be more than $11,000. If you exceed the coverage limit, you have to pay the medical expenses by using your own funds.

The coverage limit can rise and drop depending on the situation of the economy. If there is inflation and the medical cost becomes more expensive, the coverage limit will increase as well. You may have to pay coinsurance fees. The coinsurance fee is about 10% of the expenses. However, you will only be charged up to the coverage limit. You will be covered by the health insurance company after you have paid the deductible and coinsurance fees in full. There are a small number of companies that don’t require policy holders to pay coinsurance fees. You can get lower rate if the insurance company negotiate with the hospitals and get discounts.