No Deductible Plans


New Member
What are your thoughts on the various no deductible plans out there? I know Blue Cross of California has the RightPlan PPO40 - I think Assurant has a no deductible plan. Is there value to clients with these no deductible plans? What is the best way to sell these?
Generally speaking, a client who is going to purchase individual insurance is going to have to be healthy in order to get approved in the first place. A no deductible plan is really only going to make sense for a client who uses the services A LOT, right? The premium cost is going to be through the roof generally, and for a normal healthy family it is just not going to make sense financially. I'm not sure what the actual costs for that Blue Cross plan would be, but I'm sure that it's significantly more expensive than a $2500 DED plan.

I'm sure that there are clients who WANT this type of a plan, but it's our job as agents to help educate them about their options. You might do a cost comparison with the no ded plan VS a med ded plan VS an HSA. Sometimes your clients just don't know any better... IE: Most don't know much about HSA's, but it may be their best bet.

I'm rambling.... I hope this makes sense. haha...

In my opinion, the majority of the time a plan with no ded doesn't make sense.
The ppo 40 from BC of CA is a nice plan, because a person does not have to satisfy a deductible. After $40 copay the co-ins is 60/40 which is a little high and the OOP max is $7500, also a little high. Although the price is right for this plan and for a person who does not want to dig into their pocket for all of the lab and X-ray costs this is the right plan. After the office copay BC picks up 60% right off the bat.
But look at the big picture, surgeries and hospital stays you pay 40% up to $7,500!! Forget deductibles, figure out the OOP Max!!

You show someone the following:

A 100% plan with no Co-Insurance and a $5,000 deductible ($225/Month)


A 60/40% Co-Insurance plan with No deductible and a $7,500 OOP Max ($250/Month)

Which will they choose?

Bingo!! Consumers are clueless which makes each and every one of us look brilliant!

There is always a deductible, some carriers just word it differently to trick the consumer. Smart on their part!
But look at the big picture, surgeries and hospital stays you pay 40% up to $7,500!! Forget deductibles, figure out the OOP Max!!

K Dub, I agree the OOP is an important factor, although some people like a little help along the way towards satisfying the OOP Max. I have many clients who have said "they have never been close to paying $5000 or $6500 in a year for care. And if they have a little lab work or X-Rays because of an extended Flu or sprained ankle because of a weekend B-Ball game at a friends house, it's nice to have the company pick up 60% of the bill.

Sure, big picture, the premium might be a little higher, and the OOP max is $2,500 more. But if the prospects comfort level is with the co-pay plan instead of the HSA style. "Sign right here young man."

The premium is what it is, Mr/Mrs prospect here are the plus' and minus' with each plan, which fits your needs the best.
Healthagent -

Your prospects who are looking for low deductibles (but ultimately don't qualify) - are they insured now - or do you get a fair number of uninsured as prospects?
Who would be dumb enough to pay $300 to somebody who's willing to cover a $250 bill from the doctor?
That's what happens when you sell a $0 deductible instead of $250 deductible plan. The insurer will assume everybody will meet the deductible. So they charge about an extra $25 per month for it.

The same is generally true to move from $500 to $250 deductible. HDHPs are much smarter in every way. And the HSA investment grows. :)
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Folks, the best no deductible plan is an HSA-compatible 100% plan. The customer simply adds 1/12th of the calendar deductible to the monthly premium each month and then they have a 100% plan.


No deductible and likely cheaper than these "no deductible" plans.