More on Insurance and Access

Transparency in Health Care in Kentucky
Transparency- another way Direct Care is changing the game
February 24, 2017
The benefits of Direct Primary Care
The Hidden Benefits of DPC
April 6, 2017
Show all

More on Insurance and Access

Health Insurance and Health Care Access

What if Someone Tried to Sell You Insurance for Gas?

Well, the main purpose behind any type of insurance is to provide coverage in the event of an unlikely (and costly!) catastrophe. Take auto or home owner’s insurance as an example. You might use your auto policy to repair a wrecked vehicle or your home owner’s insurance to replace a damaged roof, but… you would NEVER use your auto policy to pay for an oil change or your homeowner’s to pay for cleaning your gutters. Those are predictable and affordable maintenance costs. If you did use your insurance to cover them, however, your insurance premiums are guaranteed to skyrocket. Hence the problem- why use it then, unless absolutely necessary?

For most people, a medical catastrophe like a bad car wreck or cancer doesn’t happen every year.…

In the US we have been conditioned to use our insurance cards like credit cards that cover everything. The problem is: good primary care just isn’t that expensive and we treat it like a catastrophe whenever we use our insurance cards to pay for it. That fact, coupled with many others, has driven insurance costs through the roof.

While each year probably won’t bring a medical catastrophe for most people, you will occasionally get sick or have monthly medications, so what do you do then? The solution is very simple. Direct Primary Care (DPC) is best coupled with a high deductible plan or alternative cost-sharing policy (like Medi-Share®). DPC with Access Med starts at $50/mo (and just $10 to add a child!). That’s half the cost of most cell phone bills. Then simply set aside some of the money you save monthly (by switching to a high-deductible plan) into an emergency fund to pay your deductible in case you ever need it.

Here’s the math in case you do actually meet the deductible:

  • Avg. family traditional: Premiums $1,200/mo x 12 months + $2,500 deductible = $16,900
  • Avg. family high-deductible: Premiums $600/mo x 12 mo + $5,000 deductible = $12,200
  • Avg. family cost share plan (Medi-Share®): Premiums $280/mo x 12mo + $5,000 = $8,360

All of the above policies will meet the ACA/Obamacare requirement to avoid the extra tax. All of them provide coverage for the unexpected. But none of them make sense to use for your low-cost health maintenance and predictable medical needs. Plus, when you think about it, until you reach your deductible, you ARE actually paying for your healthcare out of pocket anyway.

So what if someone tried to sell you insurance for gasoline? I would send that person packing. Funny thing is most Americans do that very thing when it comes to paying for their primary care. They are willing to pay upwards of 6x more for their care (check out last week’s blog) on the off chance that they will meet their deductible for the year.

At Access Med, we recommend taking a hard look at your options and making a wise decision based on your usual medical needs when choosing your coverage, especially if you are someone who is not likely to meet your deductible anyway most of the time.

Leave a Reply

Your email address will not be published. Required fields are marked *