Let's face it: health insurance premiums are on the rise. They have doubled in the last 8 years and still rising at a rate of about 3.7 times faster than wages do. Co-pays and deductibles are on the rise also and it is prohibiting many from access to care. Furthermore, doctor's visits are sometime limited on many insurance plans and leaves more out of pocket responsibility to families.
However, if you research and shop right, there are ways to lower your health insurance costs. Here are 5 tips to do so:
If you take on more of the out-of-pocket costs i.e., deductibles and co-payments, the less you will need to fork over in premiums. So if you are young, active and healthy, this is a great way to save on your premiums. Keep in mind that the primary purpose of health insurance is to protect one from a terrible accident or catastrophe. So for regular doctors' visits, try and cover as much of it as you can.
As employer health care costs rise, sometimes the increases are usually passed on to the employees. Getting a private plan may be a viable option for many. If you do decide to purchase a plan in the open health care market, it is very important to take the time to shop around and make an informative decision. When shopping for private insurance, some experts say that it is good to allow at least 60 days to examine and review all the possible options. There are many sites and online brokers available that can help you find a plan that fits your needs. For example, the National Association of Health Underwriters has a comprehensive list of health insurance brokers nationwide.
The other advantage of getting private insurance is that you are able to pay for what you need. You can request for the higher deductibles and can decide which services you want to pay for. For example, you may be able to save a few hundred dollars by finding a plan that didn't include chiropractic services if you don't require it. Lastly, you are never tied down with just one employer. You will have health coverage regardless of where you work.
Though it may seem like it is a cost effective option to buy coverage in bulk for the entire family, you may actually save more if you buy separate plans for individual members. Have the older members of the family purchase a different plan from the younger members of the family. Remember, age and health history are two of the key factors that calculate your premiums. Usually it is cheaper to insure the younger healthier demographic. Another option is keeping one adult on an employer-sponsored plan but purchase individual policies for the rest of the members of your family.
Many states have implemented programs such as Medicare for those who are unable to get health coverage. Visit Medicare.gov or Benefits.gov to find a program and determine your eligibility. These programs are there specifically for the well-being of those who cannot provide healthcare for themselves and their family, take advantage of it.
An HSA is a tax-deductible medical savings account that is available to any taxpayer in the US enrolled in a high deductible health plan. The money contributed to HSAs is not taxed upon deposit and these funds can be used to pay for qualifying medical expenses. Usually expenses that are in the thousands. It basically encourages individuals to save for unforeseeable healthcare expenses and also allows them to pay less for health insurance to any provider.
Not only will you personally benefit by losing wait or quitting smoking, your pockets will also get a sigh of relief. Acquiring healthier habits such as eating and regular exercise can significantly reduce the cost of health insurance. The healthier you are the less of a risk you become to healthcare providers so it is usually an incentive to getting lower premiums.