The rising cost of health care and supplemental services has rendered health insurance as one of the basic necessities of day to day life. The cost of medication, medical procedures and surgeries have become too much to bear for individuals. The increased cost of health care has thus led health insurance companies to review their policies, exclude options and raise their prices. Health insurance now is not as cheap as it used to be. Given that PPACA might make it compulsory for every citizen to have health insurance, it is necessary to find ways for reducing costs.
Finding affordable health insurance options may be something of a laborious task but it is not impossible. There are ways to reduce the cost of health insurance without compromising on the benefits. Here are a few pointers to help you along the way:
- Shop for quotes – This is the most primary step you need to take in the search for cheaper insurance, be it health or auto. The best option is to talk to an agent or look through the different company websites. Most of these websites have an embedded quote calculator which asks you for some basic information like where you live, how old you are, etc. Based on the information you provide, the calculator will give you a basic probable quote. If you submit a request form, the company will call you or send an agent over to talk to you. Compare at least 3 to 5 quotes and consider the cost-to-benefit ratio before making a decision.
- Set a higher deductible/co-pay amount – Your monthly health insurance premium is not only dictated by your own health but also by the deductible or co-pay amount you have set. Most insurance companies set the deductible/co-pay value to the lowest possible thus enabling them to charge you a higher premium rate. Increase your deductible/co-pay amount to reduce your rate significantly. Remember that the deductible/co-pay amount is the cash you’d have to pay out of your pocket in the event of a claim. Consider your overall financial position before setting the deductible/co-pay amount too high. You might have trouble paying it later. You might also find that your health insurance is of no help in the event of small claims.
- Pair a HDHP with a HSA– Health Savings Account or the HSA is a medical savings account available to tax payers enrolled in a high deductible health plan (HDHP). The money that you put into this account is exempt from federal income tax and accumulates over time if it is not used. The funds can be used to pay for any qualified medical expense without the liability of federal tax or any other penalty. Post retirement, the funds from an HSA can be withdrawn for non-medical expenses without penalties and also provides tax advantages.
- Include your spouse under your group health plan – Most employer provided group health plans carry the option of covering the spouse or other dependents under the plan. This may help you reduce the average monthly cost in the sense that each of you don’t have to maintain individual health plans.
- Use state sponsored services and walk-in clinics – Your monthly income might be too low to support any kind of private health plan. In such a case you might want to look into state sponsored plans like Medicare and Medicaid. You will be deemed eligible for Medicare benefits if you are 62 years of age or older. Medicaid benefits are for the low income section of the population who fall below the age of 62. Walk-in clinics are a good option in the sense that you don’t have to make a claim for minor medical needs thereby raising your premium. Walk-in clinics are good for addressing minor medical cases and the price range between $15 and $150.
Blog Category