Why do health insurance plans have a deductible payment? For example, if there is a $100 deductible why don't they just add $100 to the annual premium you pay for that insurance and have no deductible? It seems like a much more efficient concept.
by 
Lorenzo
ANSWERS: 2
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Because the cost of paperwork of a case is at least $50 and probably much more. If people claimed on the health insurance every time they needed a $30 check or treatment, the paperwork cost would be vastly greater than the amount paid out. They need a threshold so you don't claim unless you are at least a bit ill rather than having a minor pain. The deductible is they way the do it.
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First off - most (health) deductibles are much higher than $100. The higher your ded the lower your premium. It is a deterrent to filing frivolous clms. And it works quite well. You have to absorb the ded amt first before ins kicks in. Many will not submit a clm at all unless it's for big money.
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