The absence of a deductible in a no-deductible health insurance plan results in fewer out-of-pocket expenses for medical needs. However, the premiums for these policies are typically higher. They are also far less popular than health plans that have deductibles. Over the past 20 years, health insurance deductibles have increased as a result of insurers placing more of the cost of coverage out of customers’ pockets to keep premiums stable.
No-deductible plans do not have deductibles, but they usually still have coinsurance, the portion of medical bills you pay (usually between 20% and 40%). This article provides comprehensive information on no-deductible health insurance plans, explores alternative options, and explains how to add them to your current group plan.
What is No-Deductible Health Insurance?
A zero-deductible policy, also known as a no-deductible health plan, is a type of health insurance where the insurance company covers medical bills without a minimum out-of-pocket requirement. Health plans with deductibles have lower premiums than no-deductible plans since insurers start cost-sharing right away.
Moreover, just 17% of employees have a no-deductible health insurance policy because of the high premiums. On the other hand, 29% of workers who receive health insurance via their workplace have a high-deductible plan. No-deductible health plans can be purchased as individual policies through public and private health exchanges, such as the federal Health Insurance Marketplace, or as group coverage.
Platinum plans are the majority of no-deductible insurance policies, which can also be categorized into bronze, silver, or gold tier plans. A lower-tier, no-deductible plan may have fewer health services, a smaller provider network, or more out-of-pocket expenses like copays instead of a reduced health insurance premium.
How Does No-Deductible Health Insurance Work?
Before their insurance company begins to pay for their medical care, policyholders in the majority of health plans have deductibles to satisfy. Insurers start sharing costs with policyholders right away when they provide zero-deductible plans. With one notable exception, no-deductible health plans function similarly to health plans that have deductibles.
Depending on the health insurance company, tier type, and other variables, different no-deductible plans will cover different products and services. However, the ten essential health benefits must be included in every plan. The absence of a deductible does not exempt employees from out-of-pocket expenses like coinsurance, network copays, and the cost of non-network providers and uninsured medical services. No-deductible plans have yearly maximum out-of-pocket restrictions, similar to other health insurance policies.
Average Cost of Health Insurance With No Deductible
A 40-year-old’s monthly premium for a no-deductible health insurance plan under the Affordable Care Act is $586 on average. This is in contrast to the $509 monthly average for an ACA plan for a 40-year-old that is the total plan. This indicates that the average cost of a no-deductible plan would be around $1,000 per year, or roughly $80 more per month, than the average cost of an ACA plan.
When deciding between a plan with a deductible and health insurance without one, you should weigh the total price of the policy. For example, a no-deductible plan is a wise choice for those with regular healthcare needs, despite the higher premiums compared to other options with $2,000 or $3,000 deductibles.
What Should You Consider When Choosing Insurance without a Deductible?
Plans with no annual deductible health insurance are typically a fantastic choice for those with high anticipated medical expenses. They are typically not, however, the most affordable health insurance options available. We have listed some things to think about below to help you choose if a no-deductible plan is the right choice for you:
Anticipated medical expenses
Determine the amount of healthcare you anticipate requiring in the next twelve months. A no-deductible plan may be advantageous for older adults, high-risk individuals, or those with persistent medical issues because the insurer will cover covered medical services right away. Remember that whether or not your plan has a deductible, the majority of plans provide complete coverage for preventive care.
Financial impact
Enrolling in a no-deductible plan entails paying a higher monthly premium, it covers you from potentially hefty medical bills and out-of-pocket expenditures. High-deductible plans, on the other hand, may help you pay less each month, but they may also result in significant out-of-pocket costs if you have serious medical issues.
Risk and predictability
Healthcare expenditures are typically more predictable with no deductible plans. The fact that your monthly premiums and copayments are fixed helps allay worries about unforeseen medical expenses.
How to Get No-Deductible Health Insurance
Your employer may provide no-deductible health plans as part of its health insurance options, or they may be offered through the ACA marketplace. Plans without a deductible are rare. Compared to no-deductible plans, high-deductible plans are more likely to have cheaper premiums.
To search the market for a health plan with no deductible:
Fill out the form on the ACA marketplace website
Visit the website to enter details about yourself that could affect the cost of Obamacare, like your annual household income and ZIP code. By providing your salary, the marketplace can determine if you qualify for cost-saving subsidies or premium tax credits. The only kind of policies that offer those savings are ACA plans.
Compare health plans
You can compare side by side the many health plans in your area through the ACA marketplace, including health insurance quotes.
Seek policies with no deductible
Look over the deductible for each plan. It is possible that you will not be able to choose among no-deductible plans because they are not usually available.
Seek out insurance with low deductibles
Look into low-deductible options if you don’t have a no-deductible plan. If you choose a plan with cheap premiums, you might be able to find one with an annual deductible of less than $1,000, which could still result in annual savings.
Select a plan
On the ACA marketplace website, choose the plan that best suits your needs. Before the start of coverage, you must pay your first health insurance premium.
If you anticipate needing major medical treatments throughout the coverage period, low- or no-deductible health insurance is the best choice. These plans are often more expensive, but because the insurer’s cost-sharing benefits will start right away, you may end up paying less overall.
