High Deductible Health Insurance – A Popular Choice

High deductible health insurance has many benefits for people who are interested in controlling their health care costs. The plans allow you to put tax free money in a health savings account to be used for your health care needs in conjunction with high deductible health insurance. These types of plans have become very popular for individuals, small groups, and large employers since their inception in 2004.

According to a study by America’s Health Insurance Plans (Ahip) conducted in 2012, 13.5 million people are covered by this type of health plan. Back in 2005, only 1.1 million had this type of coverage and most of these plans covered individuals (64%) rather than groups (36%). Today, the numbers are the opposite with most of these plans covering groups (82%) rather than individuals (18%). Most companies in the United States are offering the high deductible health insurance plans to employees with a 59% share for large groups in 2012 as compared to 55% in 2011.

High deductible health insurance is becoming more popular among Americans because of their low premium rates although this results in high deductibles. In 2012, the minimum deductible for individuals was $1,200 and $2400 for families for this type of coverage. These plans offer the best way to lower the cost of health care and require the insured person to pay the cost of his health coverage before the health insurance pays for the remaining balance as per the health insurance policy.

Six states have more 10% or more of their under 65 population enrolled in high deductible health insurance plans. The leading state is Vermont (20%) followed by Minnesota, Montana, Utah, Connecticut, and Indiana. California, Texas, Illinois, Ohio, and Florida have the greatest amount of total covered lives.

Children under 20 and people 50-59 are more likely to be covered by high deductible health insurance than other age groups. Note that most of the individuals under 20 are dependents on their parents coverage.

The states with the lowest average cost for high deductible health insurance is $206 in South Dakota for individuals and $423 for family coverage in Iowa. The most expensive plans were in $470 for individuals in Tennessee and $1201 in New Hampshire for families. Below are the average monthly premiums by state according to the AHIP study:

 

State

Single

Family

Arizona

292

603

Arkansas

279

597

California

422

1,102

Colorado

380

968

Connecticut

424

1,089

Florida

325

740

Georgia

393

934

Idaho

287

586

Illinois

350

741

Indiana

372

960

Iowa

235

423

Kansas

278

569

Kentucky

326

839

Louisiana

337

758

Maine

392

1,026

Maryland

241

535

Massachusetts

453

1,127

Michigan

277

599

Minnesota

264

494

Mississippi

340

677

Missouri

320

754

Nebraska

394

915

Nevada

360

913

New Hampshire

467

1,201

New Jersey

295

785

New York

321

845

North Carolina

328

689

Ohio

348

880

Oklahoma

319

614

Oregon

326

728

Pennsylvania

395

967

Rhode Island

432

1,048

South Carolina

367

672

South Dakota

206

520

Tennessee

470

943

Texas

370

764

Utah

302

743

Vermont

390

874

Virginia

352

898

Wisconsin

379

948

Wyoming

391

800