Are the Lowest-Priced Health Insurance Plans a Good Deal?

February 20, 2017

Low-cost health insurance plans may seem like a good deal, especially if you’re trying to afford health insurance in the first place. Lower monthly premiums make purchasing health insurance more of a reality for individuals with a fixed income or to middle-class families looking to get individual health insurance.


But lower-priced insurance plans usually come with a higher deductible, which means if you find yourself in the emergency room or are suddenly diagnosed with a chronic condition, you’ll be dealing with a lot of medical bills.

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These plans can strap you with about 40 percent of the cost of health care services, along with a deductible close to the $10,000 range. If you’re not able to assume these kinds of bills, then a low-priced plan may not be the best option for you.

But there’s another problem with these plans.

Many times, carriers offering really low-cost plans got their start providing Medicaid insurance. That means their existing networks are Medicaid-based. So, if you choose one of these plans, your options will be limited to these same networks in terms of hospitals, doctors, labs and other testing.

It’s no secret that while providers have agreed to take on Medicaid patients, they get paid the lowest reimbursement rate for providing these services. They get paid virtually nothing. So when you walk in with your ABC health insurance card, the doctor is essentially seeing you as a Medicaid patient.

Even worse, your options will be limited to within this network. You may have to drive 40 miles to get to an in-network hospital or primary care physician.

That’s what’s behind the low-cost options consumers see when they search the internet for “low-priced health insurance coverage.”

These plans may work for some, but as a consumer, you should do extensive research and ask lots of questions before you go with one of these carriers.

Your health is not the worth the risk. If you have a life-threatening condition, do you have time to drive 40 miles to the hospital? Do you want to have to choose between getting immediate health care and low medical bills? (A visit to an out-of-network hospital could destroy your finances.) If you need routine care, can you take the day off work to visit your doctor?

A good health insurance plan has to meet your needs. If it’s too cheap to provide for your needs, it’s not good enough.

The bottom line is, your health care is up to you. If you need assistance researching plan options, contact InsureOne Benefits. We are happy to spend time walking you through the various plan options and dive deeply into how each one works and what it would ultimately cost you. Give us a call today.