In these days of high cost insurance plans, there are real ways to reduce your health care costs without shaving needed coverage. There are some health insurance benefits that are an excellent value based on certain needs, and others that are overpriced for the benefits you receive. None of us have the same requirements, so a bit of legwork and research will be required to determine your own specific needs. But the benefit of saving potentially hundreds of dollars per year cannot be overlooked in this time of inflated health care costs. Here are some things you can do to craft the best plan for you:
You can increase your deductible, the amount you have to pay each year before your plan begins paying. If you are like many of us, you don't have many doctor visits per year. Increasing your deductible could easily save you hundreds per year. Insurance industry insiders have revealed that insurers have a rating system which, strangely enough, reduces premiums by the same amount of a deductible increase. That is, if you increase your deductible to $1000 from $500, your rates could possibly go down by $500 or more.
Adding a limited visit restricted doctor visit copayment is another little known way to save on premiums. The copayment is a certain amount that is fixed each time you have an office visit, and the amount is usually somewhere betwen $15 and $40. If you don't have a copay, then you have to pay the entire amount of each doctor's visit until you reach your yearly deductible amount. However, if you think you will be visiting the doctor a few times during the year, the copay can save you money. This feature usually adds to the cost of a plan, but by setting a limited number of visits which are covered, you can save money and come out ahead.
Choosing a plan with a smaller network can also be an advantage. Most plans today, whether they are an HMO or a PPO, will offer coverage within a specific network of doctors and hospitals. Chances are you won't need to see the wide variety of specialists often available. PPO's allow you to choose physicians outside of your plan, but they charge a premium as an incentive to stay within the plan. HMO's however, will require you to choose a primary care doctor who is in the system, and won't allow you to see specialists unless they have been recommended by your doctor. Choosing an HMO will reduce your coverage, but your premiums will be less.
Getting re-underwritten is one of the best kept secrets for how to save money. The process of underwriting is when insurers write a policy based on factors that they know about you, such as pre-existing conditions, current health and future risk. Most of them also put you into a "pool" of similar policyholders. The problem with that is that if a large amount of the pool members get ill, then your premiums go up even if you have been healthy as a horse. So it is recommended by industry insiders that changing policies each year or changing carriers each year or both will likely save you money. Navigating your way through the complicated world of the insurance industry doesn't have to be difficult but in order to be successful, you will have to put some effort into it.
You can increase your deductible, the amount you have to pay each year before your plan begins paying. If you are like many of us, you don't have many doctor visits per year. Increasing your deductible could easily save you hundreds per year. Insurance industry insiders have revealed that insurers have a rating system which, strangely enough, reduces premiums by the same amount of a deductible increase. That is, if you increase your deductible to $1000 from $500, your rates could possibly go down by $500 or more.
Adding a limited visit restricted doctor visit copayment is another little known way to save on premiums. The copayment is a certain amount that is fixed each time you have an office visit, and the amount is usually somewhere betwen $15 and $40. If you don't have a copay, then you have to pay the entire amount of each doctor's visit until you reach your yearly deductible amount. However, if you think you will be visiting the doctor a few times during the year, the copay can save you money. This feature usually adds to the cost of a plan, but by setting a limited number of visits which are covered, you can save money and come out ahead.
Choosing a plan with a smaller network can also be an advantage. Most plans today, whether they are an HMO or a PPO, will offer coverage within a specific network of doctors and hospitals. Chances are you won't need to see the wide variety of specialists often available. PPO's allow you to choose physicians outside of your plan, but they charge a premium as an incentive to stay within the plan. HMO's however, will require you to choose a primary care doctor who is in the system, and won't allow you to see specialists unless they have been recommended by your doctor. Choosing an HMO will reduce your coverage, but your premiums will be less.
Getting re-underwritten is one of the best kept secrets for how to save money. The process of underwriting is when insurers write a policy based on factors that they know about you, such as pre-existing conditions, current health and future risk. Most of them also put you into a "pool" of similar policyholders. The problem with that is that if a large amount of the pool members get ill, then your premiums go up even if you have been healthy as a horse. So it is recommended by industry insiders that changing policies each year or changing carriers each year or both will likely save you money. Navigating your way through the complicated world of the insurance industry doesn't have to be difficult but in order to be successful, you will have to put some effort into it.
About the Author:
Ethan Kalvin is a noted source on the subject of health insurance. Whether you are looking to find individual or group health insurance, visit www.GoHealthInsurance.com, today's internet leader in comprehensive health care information. Their health library is the most extensive you'll find.
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