If selecting an indemnity or PPO plan, our analysts recommend selecting plans with high deductibles. Consider plans with deductibles as high as $1,000 or $2,000 (when making this assessment, also take into account the maximum out of pocket limit). When considering which deductible plan represents the best value, calculate how much you will save by purchasing the higher deductible. Often the amount saved will be enough to pay the difference between the deductibles. For example, it would not be unusual for an individual's $1,000 deductible plan to cost $50 per month less than a $500 deductible plan. In this example, the deductible difference is $500 and the cost difference is $600. This means that even in the unlikely event that you met your deductible, you would still save $100 by selecting a higher deductible!

This document was last modified on July 27, 1999 by LMLeber

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