• zInternationalStudents Blog

  • Sunday, July 23, 2017

  • How much Health Insurance do I need?

    Filed Under: Health Insurance

If you have thought of this, seems that you have made up your mind on the issue of whether or not you need Health Insurance in the first place. Now, we need to see how to understand the various trade-offs and arrive at the best possible dollar amount.

Finally it will boil down to, “how much can you afford?”, but there are just a few considerations that might help you in answering that question. Let us look at two plans

  1. Zero-deductible, $10 co-pay plan
  2. $250-deductible, $10 co-pay plan

The former will have a very high premium, the latter considerably less, varying inversely with the deductible amount. What all these numbers mean is simple - If you are willing to pay $X from your pocket as deductible first, you will pay less premium. If you want the insurance company to pay everything (i.e. Zero-deductible), you will pay more premium.

Make an educated guess on how often you might use the benefits (read, fall ill or visit the doctor or emergency rooms). If you have a feeling you might not need to use the benefits for smaller things like a visit to the doctor, prescription drugs, etc. on a regular basis, you might increase the $X amount. That way you will pay far less in premiums. On the other hand, if you foresee regular medical attention, pay a higher premium and use the benefits more often for free with $X=0.

Besides the deductible, a co-pay clausealso influences the premium.

Do the math. Understand the benefits illustrated above for the two scenarios,  check your finances and go for a goodhealth insurance plan.

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