I wanted to write a really short blog post about a phenomenon I've been noticing more and more in my work: the rise of high-deductible insurance plans. (If you're bored by this topic, may I suggest my last blog post).
What is a high-deductible insurance plan?
Essentially it's this: you don't actually get any health insurance until you meet deductible of several thousand dollars first. For most of us under 50, that means we are essentially getting no insurance even though we often pay a high monthly premium.
How does this work? Let's say you go to a doctor for a bad back, for an annual physical and because you get pneumonia in a given year. And let's say all those doctor's visits total up to $2000. But unfortunately, because you have an ACA plan (otherwise known as Obamacare), your deductible is $3000. And that means you are fitting the bill for all those visits, despite paying a premium monthly of $250 or more a month. That's right, your insurance doesn't pay a thing. Quite frankly it's a joke.