Tag Archives: guaranteed issue

Strategies for Paying the Least In Health Insurance

In our last leech-insurance site and on the site “How To Buy Private Health Insurance” we provided information valuable at the time, but now rather obsolete. The principle is the same.. don’t pay for something that you are very unlikely to use. An example was to pay monthly for substantially reduced doctor office visits, when statistically you are unlikely to use more than 4 or 5 a year.  The same idea is why pay a lot more for a low deductible when you are not likely to have a major medical expense. The largest expenses come from hospital stays, and again, statistically, the average person only has a hospital stay every 4.1 years.

Of course, averages are just that, and there are people more likely to use services and some less likely, and so it’s a “play the risk or numbers game”… but don’t we do that every day any way?   If so, we should make the numbers work for us.

Now in the new Obamacare structure, we have a far lower choice range, but the old rules still apply… the less risk we take (lower deductibles, lower co pays), the more we pay in monthly premeums, and conversely.. the higher we set our deductibles and copays, the less we pay.

Before when we could choose a very high deductible… around $10,000 and choose a 50-50 copay, we could save a ton of money.  We could logically conclude that the highest probability of major expenses would come from a critical illness or an accident,  So we’d take the high deductible but back this up with a couple of ancillalry products or riders. One of them was a critical illness plan that upon first diagnosis of a critical illness would pay us a lump sum of cash… enough to both cover the deductible and provide some living expenses during the recovery period.  Then we also added in an good accident plan that left us responsible for only the first $100 and paid up to $5000, and this made sense.  The majority of accidents are handled for under that amount, and larger benefits were available.

Today, the same strategy applies, only the product mixes are a bit different.

What makes the most sense is to pay the least amount monthly for your insurance, which is to say, purchase the Bronze plan with the highest deductible and copay.  Now get your pencil out and note the difference between this and the Platinum plan or Gold plan, and you will see substantial differences in costs.

Take that difference, or a small part of it and purchase as second plan which is a supplement plan covering those doctor visits (which in Bronze will not be covered until the deductible is met, other than for the mandatory and prepaid wellness visit or physical), and this plan will cover, on an indemnity basis the majority of the more routine costs. THIS LINKwill take you to a company’s plans that we recommend as a first choice, and in fact, for most people, the best choice. (Link shows Fla rates, call for rates in other states). We must say however that there is one “catch”; that catch is to qualify for this plan,  the principal on the plan must be working at least 30 hours per week as evidence of being healthy enough for insurability. Also, pre existing conditions are not covered under this plan for a year in most cases.. but with ObamaCare, it doesn’t matter.

This link gives an expanded perspective on the logic just discussed.

The referenced plan is available from us at Leech Insurance and you can call for enrollment help.. prices are shown on the attached sheet and if the principal is working at least 30 hours per week at the time of enrollment, issue is guaranteed.  If not working, call any way as there are still options available.