Coverage for Wellness
vs Just Sickness
Approximately 60% of health insurance premiums go toward prepaid doctor and hospital visits that expire each year if unused.
In 2006, the average American spent $6,667 on healthcare—$26,668 for a family of four. If you spend less, you should switch to a high deductible policy.
High Deductible Health Insurance
Your annual deductible is the amount you are required to spend each year before your health insurance begins paying your medical expenses. When you raise the annual deductible on your health insurance, you typically save more each year in annual premium than the increased amount you might have to spend on medical expenses—even if you become very ill.$$$ Tip
- If you now spend $6,000 a year for traditional low deductible health insurance, raising your annual deductible by $2,000 could reduce your annual premium by $2,880 or more—money you can invest in your wellness or save for future medical expenses or retirement.
Typical Family Health Insurance Savings
$500 vs $2,500 Annual Deductible
| Policy | Cost per month | Cost per year | $500 Annual Deductible | $500 | $6,000 |
| $2,500 Annual Deductible | -$260 | -$3,120 |
| Premium Savings | $240/month | $2,880/year |
Your insurance carrier or employer will typically lower your premium this much for choosing high deductible insurance because it costs them up to $50 in paperwork to process a typical $100 medical bill—money your carrier or employer will save if you pay your own medical bills up to your annual deductible.
Best of all, since you have control over the first $2,500 (vs $500) of your annual healthcare dollars, you can choose for yourself how this money is used—on wellness, chiropractic, dental, or sickness care, or saved for future medical expenses or retirement.