Sponsored Ads
Pauline Reimer, ASA, MAAA
Pryor Associates
Actuarial Openings: Life, P&C, Health, Pensions, Finance
Ezra Penland Actuarial Recruiters
Top Actuary Jobs
Salary Surveys Apply Bios Casualty Health Life Pension

Page 1 of 3 123 LastLast
Results 1 to 10 of 22

Thread: Personal Health Insurance

  1. #1
    Actuary.com - Level III Poster
    Join Date
    Mar 2009
    Location
    Idaho
    Posts
    134

    Personal Health Insurance

    Hello all you insurance experts! I'm shopping for insurance for myself and my wife. I'm having a major dilemma choosing between a high deductible plan or a low deductible plan. Neither of us have the option of buying insurance through an employer, although we do have the option of buying a Student Health Insurance Plan.

    I'd like to find the right balance between low monthly payment and low deductible.

    Here's the two plans I'm looking at that are opposite ends of the spectrum:

    Plan A: Both on student health insurance.
    Annual Cost: 3140
    No deductible, no copay, 20% coinsurance, maternity treated same as any other illness, but $400 limit on prescriptions.

    Plan B: Both on a private provider plan
    Annual Cost: 1608
    7500 deductible, $20 office copay, $10 prescription copay, 20% coinsurance, pays for one vision exam and $100 towards frames each year, separate 5000 deductible for maternity.

    What do you guys think?

    Some relevant info about us:

    -We (hopefully) only need to keep buying our own plans for another year and a half. At that point, if all goes well, I'll have graduated and found a job with health benefits, then it's a whole different story.
    - We have about a 50/50 chance of deciding to have a baby in the next 18 months.
    -I need a prescription that costs over $300/ month w/out benefits, but I can get by if I have to on a $30 OTC.
    -Neither of us have any major health problems, but our parents do have some significant health problems.
    -Can't really afford a high deductible, but also can't really afford a high monthly payment either! (living off student aid) So the best balance is essential to at least get as good of coverage as we can afford.


    Do any of you have any rules of thumb you use to decide what's best for yourself/family?

  2. #2
    Actuary.com - Level III Poster mathrix's Avatar
    Join Date
    Feb 2009
    Posts
    152
    Quote Originally Posted by Stodd View Post
    Hello all you insurance experts! I'm shopping for insurance for myself and my wife. I'm having a major dilemma choosing between a high deductible plan or a low deductible plan. Neither of us have the option of buying insurance through an employer, although we do have the option of buying a Student Health Insurance Plan.

    I'd like to find the right balance between low monthly payment and low deductible.

    Here's the two plans I'm looking at that are opposite ends of the spectrum:

    Plan A: Both on student health insurance.
    Annual Cost: 3140
    No deductible, no copay, 20% coinsurance, maternity treated same as any other illness, but $400 limit on prescriptions.

    Plan B: Both on a private provider plan
    Annual Cost: 1608
    7500 deductible, $20 office copay, $10 prescription copay, 20% coinsurance, pays for one vision exam and $100 towards frames each year, separate 5000 deductible for maternity.

    What do you guys think?

    Some relevant info about us:

    -We (hopefully) only need to keep buying our own plans for another year and a half. At that point, if all goes well, I'll have graduated and found a job with health benefits, then it's a whole different story.
    - We have about a 50/50 chance of deciding to have a baby in the next 18 months.
    -I need a prescription that costs over $300/ month w/out benefits, but I can get by if I have to on a $30 OTC.
    -Neither of us have any major health problems, but our parents do have some significant health problems.
    -Can't really afford a high deductible, but also can't really afford a high monthly payment either! (living off student aid) So the best balance is essential to at least get as good of coverage as we can afford.


    Do any of you have any rules of thumb you use to decide what's best for yourself/family?
    If you think both of you are healthy and will just be using your health plan for emergency only then Plan B which is a high deductible plan, meaning low monthly premiums, would be enough for your family. But if you say you need a benefit for such prescription drugs then I think you need some Plan which has a lower deductible than that 7500 deductible Plan.

  3. #3
    Actuary.com - Posting Master
    Join Date
    Oct 2007
    Posts
    3,110
    Are you too old to get insurance through your respective parents? You say you can't afford the high premiums yet you are 50/50 on having a baby? Seems pretty contradictory to me...

  4. #4
    Actuary.com - Level III Poster
    Join Date
    Mar 2009
    Location
    Idaho
    Posts
    134
    My parents don't even have their own health insurance. There's nothing contradictory about my budget and the chances of having a baby. That's why I'm leaning towards the higher premium plan (which is what we're currently doing) because it has maternity benefits. I only plan on being a broke college student for another 18 months, after that I'll have a better job and all of this will be much easier to determine. I simply say there's a 50/50 chance on having a baby because I'm married and have to be realistic about the possibility of a pregnancy (whether intended or not).
    I'm not saying I'm too broke to pay for anything, I just want to save some money on my premiums, and wondered what you guys thought about high deductible plans.

  5. #5
    Actuary.com - Posting Master
    Join Date
    Oct 2007
    Posts
    3,110
    Quote Originally Posted by Stodd View Post
    My parents don't even have their own health insurance. There's nothing contradictory about my budget and the chances of having a baby. That's why I'm leaning towards the higher premium plan (which is what we're currently doing) because it has maternity benefits. I only plan on being a broke college student for another 18 months, after that I'll have a better job and all of this will be much easier to determine. I simply say there's a 50/50 chance on having a baby because I'm married and have to be realistic about the possibility of a pregnancy (whether intended or not).
    I'm not saying I'm too broke to pay for anything, I just want to save some money on my premiums, and wondered what you guys thought about high deductible plans.
    Gotcha. I took

    Can't really afford a high deductible, but also can't really afford a high monthly payment either! (living off student aid)
    to pretty much mean that you are too broke to pay it i.e. you'd have to make some cutbacks to your current lifestyle, if that's not the case...
    ... I would still hit up the higher deductible plan to lessen my premiums and keep it in your respective pants to lessen the chance of having a kid (maternity costs nonwithstanding, babies are expensive so if I'm on a tight budget, I'd do what I can to prevent increased costs).

    You also mentioned that your parents have a medical history, is it something that has a chance of popping up in the near future or are you safe for 1-2 years at least?

  6. #6
    Actuary.com - Level III Poster mathrix's Avatar
    Join Date
    Feb 2009
    Posts
    152
    Quote Originally Posted by Stodd View Post
    My parents don't even have their own health insurance. There's nothing contradictory about my budget and the chances of having a baby. That's why I'm leaning towards the higher premium plan (which is what we're currently doing) because it has maternity benefits. I only plan on being a broke college student for another 18 months, after that I'll have a better job and all of this will be much easier to determine. I simply say there's a 50/50 chance on having a baby because I'm married and have to be realistic about the possibility of a pregnancy (whether intended or not).
    I'm not saying I'm too broke to pay for anything, I just want to save some money on my premiums, and wondered what you guys thought about high deductible plans.
    You don't have any part time job right?

    I think you have the power and will to change the 50-50 chance of having a baby which needs a healthcare for your wife. If you think you are more of not having a baby within your 18 months, go to a plan near or the high deductible plan. But if you think you are more of having a baby then you need a plan which could give you maternity benefits.

  7. #7
    Actuary.com - Level III Poster
    Join Date
    Mar 2009
    Location
    Idaho
    Posts
    134
    Yes I have a part time job, but how far do you think a part time job actually goes? And I didn't mean for this to be a conversation about whether or not I'm going to have a baby. Just wanted to know if any of you guys have thoughts about high deductible vs. high premium plans based on your professional insight into how health insurance works.

  8. #8
    Actuary.com - Level III Poster mathrix's Avatar
    Join Date
    Feb 2009
    Posts
    152
    Quote Originally Posted by Stodd View Post
    Yes I have a part time job, but how far do you think a part time job actually goes? And I didn't mean for this to be a conversation about whether or not I'm going to have a baby. Just wanted to know if any of you guys have thoughts about high deductible vs. high premium plans based on your professional insight into how health insurance works.
    I work as a health actuary, could you understand what a high deductible health plan means? Or just even the term deductible? Both you and your wife don't have social security?

  9. #9
    Actuary.com - Level III Poster
    Join Date
    Mar 2009
    Location
    Idaho
    Posts
    134
    What do you mean, could I understand what the term deductible means? Of course I do. And I don't understand how the social security question is relevant.
    How about I make my question more simple for you so you don't feel like you need to accuse me of being dumb or dig into my personal life to answer a simple question:

    In your experience, which of the following is more profitable for an insurance company:
    1. A young person with about average health for his age group who buys a low deductible plan with a high premium, or
    2. the same person buying a high deductible plan with a lower premium?

    Or are rates set in such a way that each customer group has about the same profitability?

  10. #10
    Actuary.com - Posting Master
    Join Date
    Oct 2007
    Posts
    3,110
    Theoretically premiums are a function of risk. In reality low premium population performs better.

Page 1 of 3 123 LastLast

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. List of companies
    By Ken in forum Actuarial Employment, Jobs, Careers, Interviewing, Articles
    Replies: 38
    Last Post: October 4th 2011, 10:58 AM
  2. Failed phone interview from Health insurance company
    By abc in forum Actuarial - General Discussion
    Replies: 11
    Last Post: August 13th 2010, 10:58 PM
  3. Characteristics used to set health insurance premiums
    By hlevy in forum Actuarial - General Discussion
    Replies: 2
    Last Post: November 17th 2008, 10:12 AM
  4. Stats on Health Insurance Caps
    By dsarokin in forum Actuarial - General Discussion
    Replies: 0
    Last Post: December 10th 2007, 10:55 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •