Choosing a deductible of an amount of $500 to as much as $5,000 may be a good option if your health is generally good and you feel comfortable absorbing such an amount. Even if you’re in an employer sponsored program, there may be a way for you to choose a higher deductible to lower costs. Most employers’ health plans will see substantial increases in premium cost over the next year.

Here are the positives about higher deductibles.

If you’re in an employer plan, it will help you lower your paycheck deduction and also decrease COBRA payments if you’re laid off. If you increase your deductible from $1,000 to $2,500, you may be able to achieve as much as a 25% savings in your premiums. If you raise the deductible to $5,000, you might save an additional 20%. If you have a health savings account plan, you can put aside pretax income to cover out-of-pocket medical expenses. The money in a health savings account rolls over from year to year, so it is possible to set aside funds for healthcare costs. Using this type of plan reduces taxable income.

Higher deductibles will also benefit the self-employed individual.

Here are the negatives about higher deductibles.

If you don’t think you’ll be able to pay for care until you’ve met the deductible, then it is wise to give this a second review.

Once you’ve elected to take a higher deductible, be alert for loopholes in the coverage. Is there a limit on the number of doctor visits, the number of days allowed for hospital stays, or dollar amounts for services in a year?

High deductibles may not be appropriate for people with chronic health conditions such as diabetes.

An FSA or flexible spending account works differently from a health savings account (HSA). It lets you set aside pre-tax dollars for medical, dental and vision expense. However, you have to use the money by year-end, or lose it. The cash left over may go to your employer. The IRS will allow a grace period of up to 75 days, so it’s best to review your situation, before rushing out to buy a supply of cold medicine and other over the counter medications.

You will probably want to consider whether to choose the preferred network providers, which may also help you achieve savings. Pairing your plan with a health savings account may result in benefits as well. Finally, look into co-pay options. There may be savings if you choose to pay $30 per visit as co-pay, as opposed to $10.

Assistance in getting health insurance quotes is available on line by going to http://www.insnetwork.net. Call Paul Nelson at the ACA Insurance Trust at 800-347-6647, extension 342 for any questions or if you wish to discuss this further.