Managing Risk, Part 1 – Hypocrisy in Action…

Question – which is the better health insurance policy?

One with a $1,000 deductible? Or one with a $5,000 deductible?

If money were no object, the vast majority of folks would choose the $1,000 deductible, every time. Period.

But let’s explore the details a bit more. Both plans have the same Co-Insurance – that is, the percentage of health care charges you’ll pay once you’ve met your deductible, until you reach your plan’s Out-of-Pocket Maximum,

Confused? Don’t be! It’s all part of the plan…

Back to basics. Of course the $1,000 deductible has to be better, right? I mean, look at what else you might have to spend:

The Out-of-Pocket Maximum is only $2,000 for the policy that has a $1,000 deductible, while the $5,000 deductible policy has a $6,350 Out-of-Pocket Maximum.

What all that amounts to is that, should you get hit by a train while covered by one of these health insurance plans, the maximum amount you would have to pay for your health care costs would be:

$6,350 for the high deductible policy, but only $2,000 for the better one.

A no-brainer, right!?! Of course. Who wants to risk $6,350 when you can risk spending $2,000 for the whole year?

Now, let’s talk about risk. Say you’ve just arrived at your favorite casino in Vegas – and pretend that again, money is no object. Which would you rather gamble with – $1,000? Or $5,000? $2,000, or $6,350?

I can sense the hypocrisy from here. Can you?

But seriously, there are a few differences between a health insurance plan and a trip to Vegas, and we’ll review them in the next post.


It’s not the COSTS of health care that are outrageous…it’s the CHARGES.

Physician. Health Insurance Agent. Author. Health care humorist. Medical satirist. Disruptor. At your service. My name is Kevin Wacasey, and I’ve been practicing medicine since 1994. When I graduated from medical school, I took an oath to do no harm to my patients. To me, that includes financial harm. But since health insurance took over health care over 40 years ago, health care prices have skyrocketed. And despite what we’re told by the media every day, it isn’t the costs of health care that are outrageous; it’s the charges. So if you’ve ever wondered why we spend so much on health insurance and health care, then come along and join me as I explore the crazy world of Healthcareonomics. Health care doesn’t have to be expensive. Let me show you how. For speaking opportunities and to pass along your questions/comments, please email me at drw@healthcareonomics.com.

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