Deductible vs. premium

Compare two health plans in a good year and a bad one.

Plan A: low premium, high deductible

Premium per month

Deductible

Coinsurance (%)

Your share of the bill after the deductible.

Out-of-pocket max

Plan B: high premium, low deductible

Premium per month

Deductible

Coinsurance (%)

Your share of the bill after the deductible.

Out-of-pocket max

Medical bills this year

Try $0 (healthy year), $3,000 (a broken arm), $50,000 (a hospital stay).

Plan A: your total for the year—

Plan B: your total for the year—

Same two plans, different kinds of years
Medical bills	Plan A	Plan B

Simplified: copays and drug costs are left out. Your total = 12 premiums + what you pay toward bills (never more than the out-of-pocket max).

Learn the ideas behind it: Insurance.