Which of these health insurance policies is best?

Which of these health insurance plans is best?

  • $1,250 a month premium, $0 deductible, $0 coinsurance, $0 copay, everything is covered in full.

    Votes: 0 0.0%
  • $1,000/month premium, $3,000 deductible, $0 coinsurance/copays, covered in full after deductible.

    Votes: 0 0.0%
  • $750/month premium, $6,000 deductible, $0 coinsurance, $0 copays, covered in full after deductible.

    Votes: 0 0.0%

  • Total voters
    1
Feb 2011
17,158
6,150
Boise, ID
Imagine I'm a health insurer and I offer you four health plans.


1) $1,250 a month premium, $0 deductible, $0 coinsurance, $0 copay, everything is covered in full.
2) $1,000 a month premium, $3,000 deductible, $0 coinsurance, $0 copays, everything is covered in full after you've spent your deductible.
3) $750 a month premium, $6,000 deductible, $0 coinsurance, $0 copays, everything is covered in full after you've spent your deductible.
4) $250 a month premium, $12,000 deductible, $0 coinsurance, $0 copays, everything is covered in full after you've spent your deductible.


Which of these plans is the best? Which is the crappiest?

[edit/hint] - Assume the insurance buyer does not know if she or he will need a lot of health care in the coming year, or a little, or none.
 
Last edited:
Jul 2013
59,499
66,636
Nashville, TN
Take number four then if you have a major medical emergency and can’t pay the 12 grand just file bankruptcy on the hospital and doctors
 
Feb 2011
17,158
6,150
Boise, ID
Take number four then if you have a major medical emergency and can’t pay the 12 grand just file bankruptcy on the hospital and doctors
Objectively, one of these plans is best, and one is worst. It's not an opinion thing, it's a basic logic/math thing. Are you saying #4 is best, or are you being sarcastic?
 
Nov 2015
8,752
3,010
UK
Put the $1,250 per month into a savings account. If you need medical help in the future, you should have the funds available. If you are healthy and never see a doctor, you'll be rich.
 
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Jul 2013
59,499
66,636
Nashville, TN
I am saying that over a third of American workers are earning less than a 1968 adjusted minimum wage and can only afford 4 , if that and damn sure cannot come up with the deductible
 
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Feb 2011
17,158
6,150
Boise, ID
I am saying that over a third of American workers are earning less than a 1968 adjusted minimum wage and can only afford 4 , if that and damn sure cannot come up with the deductible
You're objectively incorrect. Try again. A calculator or excel spreadsheet may help.
 
Feb 2011
17,158
6,150
Boise, ID
Here, let me give readers an extra assumption, which should hint at the correct answer:

Assume the insurance buyer does not know whether she or he will need a significant amount of health care in the coming plan year or not.
 

Ian Jeffrey

Council Hall
Mar 2013
78,816
49,010
Vulcan, down the street from Darth Vader
Put the $1,250 per month into a savings account. If you need medical help in the future, you should have the funds available. If you are healthy and never see a doctor, you'll be rich.
How many months will that take? Suppose you need medical help next week? Suppose you do not even have $1,250 per month with which to make your choice? In real life, people are limited in their options.
 
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Jun 2014
51,697
53,619
United States
How many months will that take? Suppose you need medical help next week? Suppose you do not even have $1,250 per month with which to make your choice? In real life, people are limited in their options.

Reality is the fly in the ointment of libertarian ideology.
 
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