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Who's afraid of a high policy deductible?

Vanishing deductible credit explained

Take advantage of UnitedHealthcare's vanishing deductible to reduce the deductible risk by up to 50%. A scary high deductible can be reduced to a tamed risk that is easier to handle. For example, a policy with a $5,000 deductible can be reduced to $2,500 after three years. The best part is that there is no premium increase for this benefit.

The vanishing deductible feature is included on all UnitedHealthOne policies for individuals and families. There is no extra premium charge for the feature. This feature is especially useful in the most popular $5,000 Health Savings Account qualified insurance plan.

Here's how it works: UnitedHealthcare reduces the policy deductible for each year that you do not have claims exceeding the deductible.

The credit is 20% in the first year. (Example: A $5,000 deductible is now $4,000)
Another 20% credit is earned in second year. (Example: The original $5,000 deductible is now $3,000)
A final 10% credit is earned in the third year. (Example: The original $5,000 deductible is now $2,500)

The original deductible risk can be cut in half in only three years. "It's like real cash in my pocket knowing that I have a credit with my health plan in case of a large claim" said one policyholder after earing a $1,000 first year credit against his $5,000 deductible policy.

The policy needs to be in force for a minimum of 6 months to get the deductible credit. All deductibles and credits are calculated on a calendar year basis. So a policy issued June 1, 2012 is eligible for the credit on the following year on January 1, 2013. A policy issued July 1, 2012 would be in force for less than six months in 2012 so the earliest the policy would qualify for a deductible credit would be January 1, 2014.

In the event you do have claims that exceed the deductible, the credit is used up and the credit accrual may begin again in the following year when (hopefully) your medical expenses are lower.

The vanishing deductible can mitigate some of the uncontrollable issues of health insurance like medical cost inflation and the impact of long term rising premiums.

OnlineNavigator and OnlineAdviser are trademarks of Freedom Benefits, P.O. Box 333, Newport NJ 08345, (800) 609-0683. UHCenrollment.com service is provided by Tony Novak, CPA, MBA, MT, who is not an employee, agent or producer for UnitedHealthcare companies. Other company names, products or trademarks are not affiliated with OnlineNavigator, OnlineAdviser or Freedom Benefits. The opinions expressed are those of the author and do not express the views of any other company. Content on this Web site is not meant as an offer to sell insurance or any other financial product. This is an independent service not affiliated with any government agency or state-run health insurance exchange.

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