Great question. Even though you might select a high-deductible plan, we offer additional benefits to pay the deductible for you, giving you the coverage you need with the least amount of out-of-pocket expense.

A high-deductible health plan, or HDHP, have become increasingly popular over the past several years because they can potentially cost much less in monthly premiums than traditional plans, have potential tax advantages, and many employers offer them.

What is an HDHP and how does it work?

True to its name, a high-deductible health plan is a health insurance plan with a high deductible. What’s a deductible? It’s the amount you’ll pay out of pocket for covered medical expenses before your insurance pays anything. With HDHPs that can help make you eligible for the tax advantages of a health savings account, your deductible for 2021 and 2022 will be at least $1,400 for individuals and $2,800 for a family, according to IRS requirements. Once you have covered expenses that reach that annual deductible, your insurance starts paying for care. Keep in mind that after reaching your deductible, you will probably have a copay (a flat fee for visiting a provider or filling a prescription) or coinsurance (a percentage of medical costs you pay) amount that you owe for most covered services for the rest of the year.

Though HDHPs usually have higher deductibles than most PPOs or HMOs, they do come with an out-of-pocket maximum. This is the most you’ll pay in a year for covered services from in-network providers. For 2021, the maximum is $7,000 for a single person and $14,000 for a family — rising to $7,050 and $14,100 in 2022. Once you have covered expenses that reach this maximum, your plan will pay 100% of your expenses for in-network care for the rest of the year.

Many HDHPs do provide 100% coverage for preventive services in your network before you meet your deductible. These include procedures such as yearly physicals, vaccinations, colonoscopies, mammograms, and flu shots.

Whether you will save money by opting for a high-deductible health insurance plan in Tampa, Florida, depends on various factors, including your individual healthcare needs, financial situation, and risk tolerance. Here are some considerations to keep in mind:

  1. Premiums vs. Deductibles:
    • High-deductible plans typically have lower monthly premiums compared to low-deductible plans. If you are generally healthy and don’t require frequent medical care, you may benefit from the lower premiums.
  2. Healthcare Usage:
    • If you rarely visit the doctor and don’t have ongoing medical conditions, a high-deductible plan might be more cost-effective since you’re paying lower premiums.
  3. Financial Stability:
    • High-deductible plans require you to pay more out-of-pocket expenses before the insurance coverage kicks in. Ensure you have enough savings to cover the higher deductible in case of unexpected medical expenses.
  4. Health Savings Account (HSA):
    • High-deductible plans are often compatible with Health Savings Accounts (HSAs). Contributions to an HSA are tax-deductible, and the funds can be used to pay for qualified medical expenses. This can provide additional savings and tax advantages.
  5. Preventive Care:
    • Many health insurance plans cover preventive services at no cost, regardless of the deductible. Ensure that essential preventive services are covered even before meeting the deductible.
  6. Network Coverage:
    • Check if the high-deductible plan has a network of healthcare providers in Tampa that meets your needs. Using in-network providers can result in lower costs.
  7. Subsidies and Tax Credits:
    • Depending on your income, you may be eligible for subsidies or tax credits, which can help offset the cost of health insurance premiums.
  8. Risk Tolerance:
    • Consider your tolerance for financial risk. High-deductible plans may save you money when you’re healthy, but they can lead to higher out-of-pocket costs if you require significant medical care.

It’s crucial to carefully compare the details of different health insurance plans, taking into account your health, financial situation, and preferences. Additionally, consulting with a insurance broker to compare plans specific to Tampa, Florida, can help you make an informed decision based on your unique circumstances.

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