PPO Vs High Deductible Health Insurance


Stop loss, co-insurance and deductible are three main factors that you need to bill careful consideration, while comparing PPO and high deductible health insurance plans. Both plans have deductibles. However, the amounts vary depending on the type of plan you choose. The biggest advantage of paying high deductibles is that it lowers your premium. The higher the amount you pay as deductible would lower your premiums. However, there are a number of drawbacks as well, which are described below. That is why many people prefer to go for PPOs, even if they have to pay slightly higher premiums.

choice of hospitals and doctors

OEP You should know what to do with a view to a thorough comparison between PPO and high deductible health insurance plans. PPO stands for Preferred Provider Plans, which means you can choose a specific network of doctors included in the policy. The doctors in this network to sign a contract with the insurer, according to which they need to provide their services to the policyholders at a reduced price. On the other hand, plans with high deductibles are usually HMOs (health maintenance organization plans), which means you have the freedom to choose any doctor or hospital.

claim settlements

In a high deductible health insurance plan, you can not put smaller claims. In fact, that is why insurance companies like to significantly reduce the premiums if they choose higher amount of deductibles. The higher the deductible, lower your chances of reaching a situation where you can place an insurance claim. There are many people who pay high deductibles and keep paying the medical bills out of pocket because their expenses never stabbing the deductible amount. So, high deductibles are not always a good thing. OEP is a better alternative in this regard on the other hand, because she asks for a low deductible and you can always submit your progress no matter how small they are.

Look At Your Health

When it comes to choosing between PPOs and high-deductible health insurance plans, you must first examine your health condition – look at your medical history. Do you suffer from a specific medical condition? Have a medical service often? If you enjoy good health and follow a fit lifestyle, you had better consider a policy with a high deductible. There are several advantages to do so. You can take this opportunity to create a health savings account, which will provide you with valuable tax shelter. Besides that, if you use that money to pay for medical expenses, that amount will be treated as tax-free.

If you do not give a specific doctor or hospital is preferred, it is always better to PPOs rather high deductible health insurance plans consider. Always remember, the best insurance for you is the one that meets your specific needs. So, focus on researching your needs and decide accordingly.