No-Deductible Health Insurance: What You Need to Know
No-deductible health insurance will help pay your medical bills immediately. You won't have to pay a deductible.
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No-deductible health insurance, also called zero-deductible health insurance, gives you good insurance coverage because the plan's the full benefits begin right away. From the first day of the plan, you'll get cheaper medical care because your insurance will pay part of the bill.
The downside is that no-deductible plans cost a little bit more than average because of their good benefits.
What is a no-deductible health insurance plan?
A no-deductible health insurance plan has a $0 deductible. That means you can skip the part of the plan where you're paying the full cost of medical care yourself before reaching the plan's deductible amount.
Instead, as soon as the plan begins, insurance will pay part of your bills for medical care and prescriptions.
- For example, if you had a $2,500 medical procedure and a no-deductible health insurance plan, you'll only pay part of your bill, and the insurance plan will pay the rest.
- If you had the same medical procedure and your insurance plan had a $1,000 deductible, you would pay the first $1,000 of the cost yourself. Then the rest of the $1,500 bill would be split between you and your insurance.
When to get a no-deductible insurance plan
It's worth it to pay for no-deductible health insurance if you need expensive medical care or want to avoid large, unexpected medical expenses.
Cost of deductible health insurance
A no-deductible health insurance plan costs an average of $588 per month for a Silver plan which is 2% more than average.
Coverage level | Monthly cost | More expensive than average |
|---|---|---|
| Bronze | $477 | 5% |
| Silver | $588 | 2% |
| Gold | $662 | 1% |
| Platinum | $918 | 0% |
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The rule of thumb is that Gold and Platinum plans have lower deductibles than Silver or Bronze plans. However, you can get a no-deductible plan at any tier of coverage, including Bronze, Silver, Gold and Platinum.
- Most Platinum plans don't have a deductible. That's why the rate for no-deductible plans is about the same as average at that tier.
- Bronze plans typically have a high deductible. So you'll pay about 5% more than average to get a no-deductible Bronze plan.
What should you look out for when choosing no-deductible health insurance?
Some no-deductible plans may not give you good coverage because of high copays. If the monthly rate for a no-deductible plan seems too good to be true, look for potential downsides, such as a very high cost for each doctor's visit, caps on the number of appointments you'll have coverage for, or a limited set of doctors and hospitals in the plan's network.
How does a no-deductible plan work?
Your upfront costs and when the insurance company starts paying for your medical care are the biggest differences between zero-deductible health insurance and other plans.
The timing of the coverage affects the timing for your own costs.
- A no-deductible plan helps you avoid large, upfront costs for medical care by giving you moderately priced health costs from the start of the plan.
- When you have a plan with a deductible, you'll usually have higher medical costs at the beginning of the plan, until you reach the deductible.
Your plan's deductible also affects how much you'll pay for both the plan and medical care. Here are the costs you can expect with a no-deductible plan.
- Higher monthly rates: You'll pay more each month for a no-deductible plan to get coverage that begins right away.
- Ongoing medical costs: You'll pay part of the cost for each medical service or prescription, which is called either a copay or coinsurance with a copay being a flat fee and a coinsurance being a percentage of the bill. Your medical and prescription costs also won't be more than the plan's out-of-pocket maximum. After you reach this amount, insurance will pay the full amount of your medical bills.
- Care that's not covered by your plan: With all plans, you'll pay the full cost of any medical care that's excluded from your plan. For example, your plan may not cover dental, alternative treatments such as acupuncture, Lasik, or medical care from an out of network doctor or hospital.
Comparing no-deductible plans of different tiers
A no-deductible Bronze plan is nearly half the price of a no-deductible Platinum plan.
But medical care can be more expensive with a Bronze plan than with the Platinum or Gold option. The main differences will be costs of your doctor bills and the cap on the most you'll pay for medical care .
- Example of a copay difference: A medical test could cost $200 with no deductible Bronze plan. but the same test might cost $75 with a no-deductible Platinum plan.
- Example of an out-of-pocket max difference: A Platinum plan could cap your costs at about $4,039 and pay the rest of your bills after you reach that amount. But with a Bronze plan, you might have to spend about $9,200, on average, before hitting that cap.
Coverage with no-deductible insurance plans
Coverage level | Deductible | Max. medical costs |
|---|---|---|
| Bronze | $0 | $9,199 |
| Silver | $0 | $8,883 |
| Gold | $0 | $7,138 |
| Platinum | $0 | $4,039 |
Averages based on states that use HealthCare.gov and have no-deductible plans.
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What is an example of using no-deductible health insurance?
In a situation when you need lots of medical care, a no-deductible plan can help you save money. If you only need basic medical care, you may get a better deal by having lower monthly costs, even if you pay more to see the doctor.
Your health insurance policy's deductible affects how much you spend on health care. That's why the best way to compare health insurance plans is to look at the total cost of both the insurance plan and health care.
Sample annual costs for surgery
No-deductible plan | Average plan | |
|---|---|---|
| Plan cost | $7,500 | $7,000 |
| Your costs for a $10,000 surgery | $3,000 | $6,500 |
| Total cost | $10,500 | $13,500 |
Based on sample Silver plans in NJ
In this case, you'd save $3,000 with the no-deductible plan even though your plan itself costs $500 more per year. If you expect to need major medical care or costly procedures, paying for better insurance can help you lower your total costs.
Sample annual costs for routine medical needs
No-deductible plan | Average plan | |
|---|---|---|
| Plan cost | $7,500 | $7,000 |
| Doctor visits | $250 | $250 |
| Total cost | $7,750 | $7,250 |
Based on a sample Silver plan in NJ
In this scenario, you'd save $500 by choosing the cheaper plan that has a deductible. Choosing the no-deductible plan would be overpaying for insurance because you're paying higher rates each month without getting the medical savings from the plan's better benefits.
What should you consider when choosing insurance without a deductible?
No-deductible health insurance plans are generally a great fit for people who expect to have high medical costs for the year. However, plans with zero deductible aren't usually the cheapest health insurance you can get so you have to decide if the extra monthly cost is worth it.
- Expected medical costs: Ask yourself how much health care you expect to need in the upcoming year. If you're older, high-risk or have ongoing medical problems, you may benefit from a no-deductible plan because your full insurance benefits will begin right away. Keep in mind that preventive care like checkups are fully covered right away, whether or not your plan has a deductible.
- Impact on finances: Choosing a no-deductible plan means you'll pay more each month, but you'll be protected from some large medical bills and out-of-pocket expenses. In contrast, high-deductible plans can help you lower your monthly bills, but major medical problems could result in large out-of-pocket expenses.
- Risk and predictability: Zero deductible plans generally make your health care costs more stable. You'll pay a fixed monthly cost and will split all your medical bills with your insurance. This helps you avoid high medical costs before reaching a deductible.
Are no-deductible health insurance plans popular?
No-deductible plans are not popular because of their high monthly costs. Only about 13% of those getting insurance through work have no-deductible health insurance plans.
In comparison, high-deductible plans are much more common, and 54% of people have plans with deductibles higher than $1,650 for individuals or $3,300 for families.
High-deductible plans are even more common when people buy their own health insurance through the marketplace. However, choosing these cheaper health plans could mean you're unprotected from major health expenses.
Can you get short-term health insurance with no deductible?
You can sometimes find short-term health insurance plans with low deductibles, but it's rare.
Short-term health insurance plans often have deductibles that are much higher than regular health insurance plans. For example, cheap plans can have deductibles that are $15,000 or higher because they don't have to follow the same rules as regular health insurance plans.
UnitedHealthcare and Pivot Health are two of the best short-term health insurance companies because they offer plans that have a low deductible of $1,000, in many cases.
Frequently asked questions
When is it best to have a no-deductible health insurance plan?
Health insurance with zero deductible or a low deductible is best if you expect to need major medical care in the upcoming year. Even though you'll pay more for the plan, it will help you save overall because the full benefits begin right away.
Is a zero-deductible plan good?
A zero-deductible plan is usually good health insurance with straightforward coverage. The plan's benefits will begin right away, and you won't need to pay the full cost of medical care in the beginning of the year to meet a deductible. Zero-deductible plans are a great choice if you expect to need expensive medical care or if you prefer predictable expenses.
What does "no charge after deductible" mean?
If your health insurance plan says a medical service has "no charge after deductible," that means that it will be free only after you've met the plan's deductible. For example, if your plan says that the cost of going to Urgent Care is $100 with no charge after the deductible, you'll pay $100 per visit at the beginning of the year. Then after your medical spending reaches the plan's deductible amount, you'll pay $0 per visit when you go to Urgent Care.
Methodology
The cost of health insurance is based on 2025 rates for a 40-year-old using the state averages when no-deductible plans are available. Rates are from the Centers for Medicare & Medicaid Services (CMS) public use files.
Additional sources include KFF's employer survey and ValuePenguin's high-deductible health plan survey.
Editorial note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.