By Miriam Caldwell. Money in Your 20s Expert
Miriam Caldwell is a freelance writer with a specialty in personal finance. She believes that you can lay a solid foundation by starting to manage your finances in your twenties.
A high deductible insurance plan is a more affordable option when you are considering health insurance. These plans offer lower monthly premiums. However, they usually do not cover well childcare or well visits until you have reached your annual deductible. Then the insurance coverage kicks in, usually at one hundred percent coverage.
The downside to a high deductible insurance plan is that you are responsible for paying everything out of pocket until you reach your deductible. You will pay a hundred percent of the cost of prescriptions, doctor visits, and emergency room visits. You will also pay for the cost of surgeries and out patient procedures. If you are considering a pregnancy, you need to check if there is maternity
coverage on your policy. You can work on saving on your medical care by shopping for more affordable health care.
Your employer may offer a high deductible option or a traditional health insurance option. If they cover the entire cost of the premium, it may be easier to handle the budgeting with the traditional health insurance option, but if you have to pay for the premium yourself you should carefully weight the total out-of-pocket costs for both policies and then make your decision on the option that is more affordable. If you are self employed, you may choose this plan because the premiums will help you save money. Health insurance is one the things you should never cut from your budget. The risks are not worth potential savings. You should cut all fun and luxury items from your budget completely before you stop carrying health insurance. A high deductible plan will make it easier for you to maintain health insurance.