As long-time readers may recall, we switched from a traditional PPO health insurance plan to high deductible plan this past fall. We did this for a couple of reasons. First, it dramatically reduced our premiums. Second, it gave use access to a health savings account (HSA), which we intend to use as a Roth-like investment vehicle.
At the same time, this plan completely abolished co-pays and dramatically increased our deductible to $3000. Considering the premium savings, it was a no-brainer for us to switch, especially since our coverage (which is quite good) otherwise remained the same.
Of course, that “no-brainer” didn’t feel particularly good on a day-to-day basis, as we were paying a significant amount of money to our doctors and pharmacy. In fact, we’ve spent so much that we’ve already covered our deductible, and we aren’t even halfway through the year.
The good news is that, from here on out, we’ll only be responsible for 10% of the usual and customary amount. In most cases, this will work out to be less than what we used to spend on our old co-pays.