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Doctor Saves Thousands on Health Insurance
26 Feb
Summary
- Self-employed doctor drastically cut family's health costs.
- New plan combines short-term coverage with cost-sharing.
- This workaround offers significant savings but carries risks.
An OB-GYN in North Carolina has found a way to reduce his family's health insurance costs by approximately 55%, a saving of around $16,000 annually. The physician, paying over $27,000 for his family of five, sought alternatives due to soaring premiums. His strategy involves a two-part approach to coverage.
For four months, his family is covered by a short-term policy with a $5,000 deductible, costing $500 monthly. For the remaining eight months, they utilize a cost-sharing program, where monthly payments are pooled to cover expenses exceeding a set amount. This reduces their yearly spending to an estimated $6,800 for coverage, plus additional costs for routine care.
This method saves him nearly $16,000 compared to his previous expected expenses. However, experts warn that cost-sharing plans lack the regulatory protections of traditional insurance and may not guarantee claim payments. For example, childbirth may not be covered in the first year of membership, unlike legally mandated coverage in traditional plans.
