A relatively unknown feature of many medical plans, makes reducing the deductible on your Ohio health insurance policy possible without increasing your rate. UnitedHealthcare and Assurant now offer reductions to your major medical deductible if you meet certain conditions. It’s very possible if you and other family members remain healthy, your potential medical out-of-pocket expenses will come down. Here’s a quick look at each company’s program:
UnitedHealthCare’s “deductible credit” provides a 20% reduction on your policy every year you don’t meet that amount. This discount will be applied every year until you reach 50%, which is the maximum. The savings can be substantial, especially if you have a high deductible, such as $10,000. Even on lower amounts, it’s an easy way to save money if you have a big in-hospital or other large claim. It’s also incentive, of course, for you to stay with UHC for many years.
So, hypothetically, if you rarely (if ever) meet your deductible, you could effectively lower your premium by selecting a higher amount, wait a few years and eventually it becomes that lower amount you wanted! But you saved a few thousand dollars every year (assuming a family plan). This isn’t a bad concept! Maybe UnitedHealthCare’s plan is even better than we thought! And they are one of the few carriers to offer this feature. In most areas of the state, they are a competitive option.
The most cost-effective plans offered by UHC are their “Saver 80,” “Copay Select” and HSA policies, so these options may be best suited to consider the credit during the purchase process. The “Copay Select” is the most expensive plan of the three, since it includes an office visit and prescription copay. However, that means this feature is more valuable on this particular policy.
Assurant offers a “One Decreasing Deductible” feature that uses “credits” twice per year in the amount of 10% of your current choice. These “credits” accumulate and are posted the first day of January and July once your personal policy has been in effect for 60 days. If you have met the amount within the last 12 months, the credit still is applied.
It’s possible that your plan deductibles could decrease to $1,500 for an individual and $3,000 for a family. Total reduction could be as much as 50%-70%. Not too shabby! However, this benefit is only available on Assurant policies with 100% coinsurance. And in most areas of Ohio, Assurant’s rates tend to be rather high, although they seem to be reducing. Their VERY high out-of-pocket plans are the most competitive.
What about Anthem BC, Aetna and Medical Mutual? Not quite yet although Anthem does offer this benefit in Indiana. We expect more companies to offer a variation of this coverage within the next 12-24 months. And, most importantly, often, you are still better off with a policy from a company that does not have the vanishing deductible option. The rates and coverage may be superior to the companies that have it.
Regardless, we always give you an unbiased opinion, the lowest available Ohio health insurance rates and three easy ways to apply for coverage. If a “vanishing deductible” concept is cost-effective for your specific situation, we will recommend it.