How to save a FORTUNE on medical insurance – with simple math.

Deductibles, deductibles, deductibles.

My entire family is insured for about $250 / month.  How do we do it?  EASY.  High deductible.  $5,000 individual deductible.  $10,000 family deductible.  “Egads,” you say??  Stay with me…

2 + 2 really IS 4!

What is truly STUNNING is how even EDUCATED people refuse… REFUSE to do SIMPLE math.  If you are willing to perform SIMPLE math, you’d save yourself THOUSANDS of dollars per year.  But, even intelligent people refuse to do the math.  Even if someone else shows them the simple math, they get a case of the “yeah-but” disease.  2 + 2 = 4.  Yeah, but…

People are “silly.”  (I’m being uncharacteristically and very briefly diplomatic.)  They THINK they are better off with low “co-pays” and low deductibles.  What they don’t see is that their REAL co-pay is the HUGE premium they are paying every month.

I could get a low deductible for my family.  Then it would cost me $1000+ / month for insurance.  Let’s have some fun with math… to counter those that say, “Yeah…. But you had to pay $5,000 for your appendectomy.”  That’s right I did.  But, I STILL paid FAR, FAR less than you did for insurance and health care combined.

Let’s say you and I are the same age (47 y.o.).  Family of four.  You get a low deductible plan.  It costs you $1000 / month.  I get my plan with a $5,000 deductible.  My premium is $250 / month.  For now you have “bragging rights” about how little you pay if you go to the doctor or end up in the hospital.  Enjoy your moment of superiority.  It will be brief.

Yeah, but what if…

We both go five years without needing anything medical.  But, then we both end up in the hospital with appendicitis.  Right away, I’ve got to pay $5,000.  Let’s say you pay NOTHING.   Your surgery and hospital stay is “100% covered.”   Woo-hoooo!   You gloat about not having to pay anything.  “Told ya, told ya, TOLD YA!”  Uh-huh.  Let’s go back to our SIMPLE math:

Over the last five years you’ve paid $60,000 in premiums ($1000 x 12 x 5).  I’ve paid $15,000 ($250 x 12 x 5) in premiums.  Add in my $5,000 paid at the hospital, and we come to a total of $20,000 that I’ve paid for health care and insurance.

All said, I’ve paid ONE THIRD of what you paid.  I’ve SAVED $40,000!!  But, you can “rest easy” with your “low co-pay” or “low deductible.”  In fact, you’ve paid (dearly) IN ADVANCE… mostly for services never used.  Brilliant.  Multiply those numbers over a lifetime (several decades) and the numbers will make you sick.

It is truly stunning.  Yeah, but WHAT?

PS… Obama’s plan will PROHIBIT me from saving money by banning high deductibles.  Fucking brilliant again.

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3 Responses to How to save a FORTUNE on medical insurance – with simple math.

  1. Mark Dolson says:

    This is what we do… Makes so much more sense.

  2. Michael Green says:

    Regarding your health insurance post – I also have a $5000 deductible, but I pay $1600 a month for an HMO for 4 people. Is it too intrusive to ask who you’re insured with?
    Possibly your ins. is not available in Penna., but this is one area I’d really like to save.

    On another note, thanks for all your contributions to Dentaltown and dentistry in general.

    • The Dental Warrior says:

      Holy moly, Michael! Your crazy high premiums may have something to do with your location (PA). Or maybe you’re a 99 year-old 3 pack-a-day smoker?? ;) haha… just kidding.

      My policy is with Humana and is a PPO.

      Thanks for the compliment! Just doing my “thing” spouting off about “stuff.” :D

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