How does a higher deductible typically affect health insurance premiums?

A higher deductible generally leads to lower health insurance premiums. This is because when an insured chooses a higher deductible, they are taking on more financial responsibility for their healthcare costs before the insurance kicks in. As a result, insurers often reduce the premium to reflect this increased cost-sharing. People with higher deductibles are viewed as having a lower likelihood of filing claims frequently, which allows insurers to charge lower premiums.

This arrangement suits many policyholders who prefer lower monthly payments and are willing to accept a higher out-of-pocket cost in case of a medical need. By selecting plans with high deductibles, consumers can save money up front, but they should also be mindful of the potential costs they would incur should they require medical care.