2015-2016 Health Insurance Plans
(Click on the links to see a detailed Dr. Wacasey’s Equation analysis of each coverage level)
As can be seen from the spreadsheet, the Active Care 1-HD plans have the lowest premiums (or P), and make the most economic sense from the standpoint of staying well. But what if the insured should suffer a serious illness or injury, and reach their out of pocket maximum (O)?
With Dr. Wacasey’s Equation, adding these two variables gives WHAT (W) might be spent on health insurance AND health care during the plan year:
P + O = W
In comparing the W for the Active Care 1-HD plans to the other policies, for the Employee category these lower priced plans offer the best value, both in sickness and in health. Interestingly though, the W for the Employee + Spouse, Employee + Child(ren) and Employee + Family categories is actually lower for the Scott & White HMO plans.
But one downside of any HMO is that they are restrictive, requiring you to stay within the plan’s network. Plus, although these plans may end up saving you money on the W in the (statistically unlikely) event of a catastrophe, how much more do they cost in the first place?
Let’s examine the difference in P‘s, compared to the potential savings on the W:
An Employee + Spouse would pay $2,659 more in Premiums, to potentially save $241 on What might be spent.
An Employee + Child(ren) would pay $2,200 more in Premiums, to potentially save $700 on What might be spent.
An Employee + Family would pay $345 more in Premiums, to potentially save $2,555 on What might be spent.
So, the ends don’t always justify the means, and one can waste plenty of money buying the so-called “better” health insurance. Think of it this way: would you hand a Vegas casino $2,659 to sit for a poker hand worth $241?
To see a detailed Dr. Wacasey’s Equation analysis of each coverage level, click on the link above each box.