You may have heard the idea of paying cash without
involving your insurance for a doctor’s procedure. Paying how an uninsured individual would in cash and trying to save money upfront with your physician. While this may seem
to work in certain circumstances, it’s not a good option.
If you are in a plan with a high
deductible, it keeps your premium relatively low, but you pay more for your
services until your deductible is reached. With many deductibles being around
$6,000, that is a daunting number to potentially pay at once. Paying the
doctor for large procedures in cash is said to occasionally be able to save you
some money in situations where there’s an expensive procedure being done. This
is done by not alerting your insurance of the procedure and paying a cash
price given by the provider. While this may be able to save you a little bit of
money at that time, if you have wads of cash laying around to pay this upfront. While that sounds intriguing, it will still often cost you more money than using your insurance in the long run. First, this
wouldn’t contribute towards your deductible. If your deductible is met or close
to being met after the procedure if you used your insurance, you would save tons
on money for the rest of the year thanks to your insurance. People have looked at
this idea thinking it’s saving a quick buck, but could cost you substantially
more.
Finally, if you aren’t interested
in the high deductible, higher risk plan, a plan that has a higher premium, but
lower deductible will be right for you and is a significantly better option
than paying as if you’re uninsured. As a risk-adverse person paying more
upfront but having the coverage completely covered for you incase of an emergency
can be a major financial advantage for you in a time where you’ll need it as
much as ever. There’s a reason insurance is as prominent as it is, and evading
using it for slight savings could cost you much more in the long run.
G. Kevin Nemith , Hilb Group Delaware Xavier Bodnar , Hilb Group Delaware
Post by:
G. Kevin Nemith CIC. CRM President, Agency Leader for Hilb Group Delaware,
Xavier Bodnar Benefits Broker Hilb Group Delaware
knemith@hilbgroup.com
xbodnar@hilbgroup.com
Top 20 insurance brokers and risk managers in the USA.
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