Saving in Health Insurance
There are a lot of health insurance plans available. Several factors should be considered in getting an insurance plan. Do not purchase a plan just because it’s the lowest plan available. Look for plans that are suitable for you and your family. Here are some tips in saving on health insurance.
All premiums are different; sometimes there is a significant difference of 50% for the same policy. Evaluate the benefits of each plan and compare its monthly premium. Make sure that the plan you choose has enough coverage, and can possibly cover you for a lifetime.
If you choose a plan with a higher deductible, chances are your monthly premium will be lower. Medical bills will be paid for by the insurer until the deductible has been reached. However, other plans do not enforce the deductibles during office visits, prescription drugs, preventive care and accidental injuries.
When you’ve reached your desired deductible, a certain amount will be paid to you by the insurance company this is called Co – insurance. Almost all insurance companies pay 80% of the insurer’s medical bill. Deductibles typically range around $5,000 up to $10,000 annually. If a medical bill exceeds the annual maximum of deductible, the insurance company will cover the medical bill 100%. Other companies offer 50% on co – insurance which will make the monthly premium lower. Frequent visits to the doctor might cost you a lot in the long run.
Preferred providers are often provided by an insurance company. If you avail the services of these doctors, chances are most of your medical costs will be covered by the insurance company. If you visit a doctor or hospital not included in the insurance company’s list of preferred providers, they might cover only a part of the bill.
Age plays an important factor in purchasing a health insurance. At some point, it would be wise and affordable to get separate insurance policies for each family member.
Most employers provide health insurance to their employees; however, dependents may or may not be covered by these policies. Adding your family members to the company provided policy can be costly. You might want to consider purchasing an individual or family plan that is separate from the employer’s coverage.
When a former employee wants to continue an employer-sponsored plan, then this is called COBRA. Premiums are usually paid by the insurer. If an individual is healthy, it is advisable to get a new coverage instead of continuing with the COBRA plan. If a person has past health history, it will be more difficult to get an individual coverage; it is then advised to stay with the COBRA plan.
Health Savings Accounts allow its insurer’s to save money, tax free and interest earning account that they will be able to use in paying medical bills. Fewer premiums are paid; therefore it is a high deductible health plan.
High risk plans are expensive and are only available in some states. These plans are only available to those who have serious health issues like AIDS, heart disease, cancer, diabetes and other chronic conditions. 60% of those who applied for coverage have been declined.
Subsidy helps in paying of premiums for the traditional health insurance. It is available to those who are in the poverty level and even those above the poverty level.