Should You Increase Your Health Insurance Deductible? Key Facts and Considerations

Can raising your health insurance deductible save you money? It's a personal decision, but our analysis of key trends and data can help you weigh the options.

1. More policyholders are choosing higher deductibles
In 2006, just 5% had increased their deductible. By 2016, that figure rose to 12%.

2. You'll enjoy a discount on your monthly premium
A higher deductible typically lowers your premium. Note that many insurers offered slightly smaller discounts in 2017.

3. It's not always more cost-effective
About 80% of those with a voluntary deductible come out ahead—their premium savings exceed extra healthcare costs. For the other 20%, it doesn't pay off.

4. Certain groups opt for it more often
Men, younger people, higher earners, and those with higher education levels choose higher deductibles more frequently. Naturally, individuals with lower healthcare costs do too.

Key factors to consider before increasing your deductible

• Will it truly benefit you? Review your healthcare usage, run the numbers, and calculate potential savings or costs.
• What if your care needs exceed expectations? Ensure you have the funds to cover the extra deductible—some insurers don't offer payment plans.
• Make an informed choice. Don't auto-renew; review your policy annually for the best decision.

Have you voluntarily increased your deductible?