How to decide on a health insurance deductible

Your health, family and budget all matter when picking a deductible. Find out how to think it through to arrive at a decision that works for you.

Choosing a health insurance deductible can feel like a high-stakes decision. Many people worry about picking the “right” one. But, honestly, no such thing exists. Instead, there are many things to consider before you settle on a deductible and plan that may fit your needs.

Here is a guide that will help you figure out how to choose a deductible and the different factors that can affect your choice. First, though, learn what a health insurance deductible is and what to ask yourself to pick the one that will suit your needs.

What is a health insurance deductible?

A deductible is the amount you pay for covered medical care before your insurance company starts covering costs.¹For example, if your plan has a $2,000 deductible, you’ll pay the first $2,000 for covered services yourself. After that, you usually pay a copayment or coinsurance for covered services while your insurance covers their portion.

Some services, like preventive care, are often covered before you meet your deductible. For family plans, each member may have their own deductible. But there’s also a total family deductible that applies to everyone.

In general, when choosing from similar plans, the lower the deductible is, the higher the premium will be. Likewise, if you’re looking to decrease your monthly premium, increasing your deductible may be an option.

If you need more ways to help with out-of-pocket medical costs, explore fixed indemnity insurance. These plans can help you pay for common medical expenses.

High vs low health insurance deductible: Which should you choose?

Trying to decide between a high deductible or a low one? Everyone’s situation is different. There isn’t one answer that fits everybody.

But you can ask yourself a series of questions. Think about your health, family, finances and comfort with risk as you explore these scenarios:

How healthy are you?

If you’re generally healthy, with no chronic conditions and no high-risk activities as hobbies, you may not need medical care often. A higher-deductible plan could make sense because you’re less likely to end up in urgent care or the doctor’s office. Plus, lower monthly premiums could be a fit for your budget.

How young are your children?

Young kids often need regular checkups and vaccinations. So if that’s your situation, you may find a lower-deductible plan more affordable overall. A lower deductible plan helps cover frequent medical visits with lower out-of-pocket costs.

Accidents happen — but big bills don’t have to. Explore accident insurance options and see how it can help with out-of-pocket expenses today.

How comfortable are you with financial risk?

Think about how much risk you’re comfortable with.

With a higher deductible: You have lower monthly premiums. But you may pay more up front when you need care.

With a lower deductible: You have higher monthly premiums. But your out-of-pocket costs may be more predictable.

Do you have access to a Health Savings Account (HSA)?

A Health Savings Account (HSA) is a type of savings account that lets you set aside pre-tax dollars to pay for qualified medical expenses. Those include deductibles, copayments and coinsurance.² If you have an HSA, a high-deductible plan may be more manageable. Why? Because you can use the pre-tax dollars you set side in an HSA to offset out-of-pocket costs.

What other services are covered by your plan?

When choosing a health plan, it’s important to know not just what your deductible would be, but also what other services are included. Some services may be covered up front, without requiring you to pay a deductible. Consider asking about:

Yearly wellness visits: These are routine checkups that help catch potential health issues early

Preventive screenings: These are tests like mammograms, Pap smears and cholesterol checks

Vaccinations, including flu shots and other recommended vaccinations for you and your family

Specialist visits: This would include coverage for providers like dermatologists, cardiologists or physical therapists

Mental health services: Therapy sessions, counseling or visits to a psychiatrist for medications

Prescription drugs: These would be the medications that are covered along with copays

Knowing what’s included can help you avoid unexpected costs and make sure the plan meets your health needs.

Can supplemental insurance help with high or low deductibles?

Supplemental insurance can help cover out-of-pocket costs and unexpected expenses.

With a high-deductible plan: Supplemental insurance can help with out-of-pocket costs for unexpected medical events. Types of supplemental insurance can include:

Accident insurance: If you get injured in an accident, it can help cover costs for ER visits, X-rays or hospital stays.

Critical illness insurance: Pays a lump sum benefit for first diagnosis of a qualifying serious illness such as cancer or a heart attack.

Fixed indemnity insurance: Provides a set payment for certain services like doctor visits or hospital stays.

These supplemental plans can help you manage larger out-of-pocket costs until you meet your deductible. There is a monthly premium for supplemental insurance that is not included in what you’d pay for your primary health insurance.

With a lower-deductible plan: Even if your deductible is lower, supplemental plans can help cover costs that your primary health insurance plan might not fully pay for. These can include:

Hospital stays: Helps with expenses from planned or unexpected hospital stays, such as surgery fees.

Dental care: Covers routine care like cleanings and exams. It may also help with fillings or other treatments.

Vision care: Supports eye health with yearly checkups. It may also include coverage for glasses and/or contact lenses.

By pairing supplemental coverage with your deductible choice, you can make your health plan more predictable and easier to manage financially.

Deductibles aren’t one-size-fits-all. The best choice for you depends on your unique situation — your health, lifestyle and family needs. By considering these factors along with tools like an HSAor supplemental insurance, you can balance monthly premiums with potential out-of-pocket costs. Even better, you can gain more predictability for your budget’s bottom line.

Curious as to how supplemental plans can help your family? Call 1-844-211-7730 to speak to a licensed insurance agent or browse plans online.

For informational purposes only. This information is compiled by UnitedHealthcare, and/or one of its affiliates, and does not diagnose problems or recommend specific treatment. Services and medical technologies referenced herein may not be covered under your plan. Please consult directly with your primary care physician if you need medical advice.

Sources:

Healthcare.gov. “Deductible.” Accessed September 30, 2025. Retrieved from https://www.healthcare.gov/glossary/deductible/
Healthcare.gov. “Health Savings Account (HSA).” Accessed September 30, 2025. Retrieved from https://www.healthcare.gov/glossary/health-savings-account-hsa/

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