How does an HDHP ( high deductible health plan) work? If the health insurance company doesn't pay any medical bills until you reach your deductible, why do I even need health insurance?
I hear this quite often, but the logic escapes me.
You probably carry automobile insurance, but the insurance policy doesn't pay anything until you wreck your car. Using the same logic as the HDHP question, why even carry auto insurance if you have to wreck your car before it pays?
I often tell people an HDHP is very much like your car insurance. Your car insurance policy does not have copay's for tires, brakes and oil changes, yet somehow you manage to cover those things (and gasoline too) without filing a claim with your car insurance carrier.
Why do you feel like your health insurance must have a copay to be any good?
If you have a health insurance policy with a doctor copay, here is what happens. Say your doc copay is $40. A normal office visit without a copay is less than $60. So when you use your copay, you pay $40, the doc files a claim with your health insurance company and they send him/her a check for another $20.
Without a copay everything works the same except you pay nothing when you go to the doctor. Your doc sends the bill to your health insurance company, they adjudicate and reprice the claim to $60 and send you a statement.
Either way, your doctor visit cost $60.
The difference is, you paid an extra premium for the convenience of having a copay. That overcharge is used to indemnify your doctor for the difference in your copay and the adjudicated, final bill.
And those copay's do not accrue toward your deductible nor out of pocket maximum. You could go to the doctor 5 days per week, 52 weeks per year, and never put a dent in your deductible.
When you have a covered expense that falls below your HDHP deductible, your medical provider files the claim, the claim is adjudicated and applied toward your deductible.
If you needed to go to the doctor 5 days per week, 52 weeks per year, under an HDHP you would eventually satisfy your deductible and eventually hit your out of pocket maximum which means (in most cases) you pay nothing going forward for the continued office visits.
Affordable HSA (Health Savings Account) Health Insurance Plans
Looking for affordable health insurance in Georgia and an HSA? Georgia Insurance Shop offers competitive rates from all the major health insurance companies including Aetna, Blue Cross of Georgia, Cigna, Humana and more.
2. Right-Click then Copy
3. Paste the HTML code into your webpage
Incoming search terms:
- how does a hdhp work
- how does hdhp work
- how does a hdhp plan work
- how does an hdhp work
- cigna hdhp co pay
- how does an hdhp work?
- how does cigna high deductible plan work?
- how does hdhp plan work
- how does hdhp work as secondary to medicare
- how does my HDHP and HSA work
