Often when I speak with customers who are trying to choose a health insurance plan, the question comes down to deciding between a standard deductible plan and a deductible plan with HSA (Health Savings Account). These two types of plans have differing advantages. The standard deductible plans offer doctor visits and prescription drug coverage right away. Though the HSA plans do not cover doctor visits or RX until the deductible, they do have some of the lowest out-of-pocket maximums of all the plans.

Standard Deductible Plans

Advantages: doctor visits and prescription drugs covered before the deductible, low monthly premiums

Most Popular of this Type: $30/$1500 Deductible Plan, $40/$3000 Deductible Plan

People who are concerned about coverage for routine visits and prescriptions tend to choose these plans. The $30/$1500 Deductible Plan is one of Kaiser California’s most popular plans. Why? The $1,500 deductible allows Kaiser to lower the monthly premium considerably. Many find that the savings on the $500 and $1,000 Deductible Plans just isn’t enough. For most people, they get their first real price break when they drop down from the $1,000 Deductible Plan to the $1,500 Deductible Plan. The price is right and many find security in knowing that their basic coverage needs (RX and doctor visits) are covered right away with a small copayment. Others want to lower their monthly premiums a bit more, so I will recommend they drop down to the $40/$3000 Deductible Plan. This plan offers similar coverage: doctor visits for $10 more and prescriptions for the same price. The main differences are the deductible and out-of-pocket maximum amounts and of course, the lower monthly premium.

HSA Deductible Plans

Advantages: low out-of-pocket maximums, preventative care, HSA option, low monthly premiums

Most Popular of this Type: $0/$1500 Deductible Plan with HSA, $0/$2700 Deductible Plan with HSA, $0/$5000 Deductible Plan with HSA

Those who focus on the bottom line as well as people who want major medical coverage tend to like these plans. The three plans listed above offer 100% coverage once the deductible is met. The $0/$1500 Deductible Plan with HSA has the lowest out-of-pocket maximum of any of the California plans. Your worst case scenario in one year is $1,500 because after that point you have 100% coverage for the rest of the year. I put my wife on this plan because it was the cheapest way for us to have a baby. After our baby was born in February, now my wife has 100% coverage for the rest of the year. Beyond that, I’m still paying the low monthly premiums that I get with a deductible plan, and I get to deduct all her medical expenses from our federal taxes. The $0/$2700 and $0/$5000 Deductible Plans with HSA offer basically the same coverage; the only difference is that the deductibles/out-of-pocket maximums are higher and the monthly premiums are lower.