Is a lower deductible always better?
I’ve created a pair of dummy Silver plans. Let’s assume they are from the same insurer with the same network and they both have Exclusive Provider Organization (EPO) structures.
Plan A: $3,800 deductible and no other cost sharing
Plan B: $1,000 deductible, $7,000 out of pocket maximum, 50% Coinsurance for everything above deductible.
Which plan has a higher actuarial value?
Is it the low deductible plan or the plan with a higher deductible?
Plan A has a 71% actuarial value for the 2018 CMS AV calculator. Plan B has a 68% actuarial value.
Which plan is better for you?
Well that depends…..