What type of plan typically covers bigger health expenses?

The high deductible health plan is designed to cover larger health expenses after the insured meets a higher deductible. These plans usually have lower monthly premiums compared to other types of health insurance. However, they require individuals to pay a significant amount out-of-pocket before the insurance begins to cover a larger share of the medical costs.

This structure makes it favorable for those who expect to have lower routine medical expenses but want a safety net for substantial medical costs, such as surgeries or hospital stays. Once the deductible is satisfied, these plans typically provide comprehensive coverage for a range of services, making them advantageous for individuals or families who might otherwise be exposed to significant financial risk due to unexpected health issues.

A low deductible health plan, on the other hand, generally starts covering costs before a deductible is met, which can make them less ideal for covering larger expenses since the premiums are usually higher. A comprehensive health plan typically includes a broad range of services and may not necessarily focus solely on covering larger expenses. Preferred provider plans emphasize using a network of specific providers to reduce costs, which can limit choices and doesn’t specifically address the scenario of handling bigger health expenses effectively.