Quick Insurance Tips

What will it cost you to have a medical emergency but no medical insurance?  It can cost you everything that you have worked for.  Finding ways to reduce your medical insurance costs without eliminating coverage can mean that you get to keep your house, your credit and your health.

Health insurance can be very expensive and because of that it unfortunately isn’t an option for many people.  Some, perhaps most of those without coverage can’t avoid it.  Some who technically can afford it are forced to choose between buying health insurance and living in a safe neighborhood or sending a child to college.

If you are not in one of those categories, but are still considering going without health care coverage consider the fact that even in these recessionary times, uninsured or poorly insured sicknesses and accidents cause more people to go bankrupt and to be foreclosed upon than anything else.

There are ways to reduce your costs for health insurance without risking your financial future.  You can find plans that have similar coverage to the plan you are considering dropping that are less expensive simply by shopping around.  You may also be able to raise your deductible.  In so doing you may reduce your coverage and price without eliminating coverage entirely.

Shop for Health Insurance

Shopping around for insurance can save you a bundle.  There is often a wide variance in the price of health insurance policies that offer the same or similar coverage.  Many people fail to shop around for coverage. Many others shop once and never know that the plan that was the most competitive five years ago is one of the most expensive today.

If you need to insure a family, one of these “secret health insurance buying strategies” may help you lower your premiums.

Look at Low Cost High Deductible Health Plans

High deductible healthinsurance plans are often the best for many families.  These plans tend to be much less expensive than low deductible co-pay plans.  You will trade some coverage for the smaller things, but will probably be able to get excellent coverage for the catastrophic medical event.  You may be able to cut your costs in half with a high deductible health insurance plan.

These plans may also help you save on income taxes as well.  Owning a HDHPs or high deductible health plan can qualify you to open a health savings account.  HSA plans are similar to Individual Retirement Accounts or IRAs.

An HSA can also help you spend less on medical care.  A debit card that accesses your HSA funds will allow you to spend pre-tax dollars on medical and dental expenses, and thereby turning a $100 expense into a $72 expense for many Americans.

By shopping around and or purchasing a higher deductible health insurance policy, you can reduce your costs without risking the loss of your home and financial future.  Consider these options before considering dropping your health coverage entirely.

Buying a zero deductible health insurance plan can mean that you pay extra for lousy coverage.  Although this isn’t always true, a zero deductible policy can have other cost shares.  Your monthly premium is likely to be higher than that of a plan with a moderate deductible.  You may also pay more in coinsurance or co-pays.

A health insurance policy that allows its policyholders to go to the doctor or hospital without any money out of their pockets will tend to be overused.  Insurance policies that are overused will cost the carrier more and therefore will cost you the consumer more.  A policy that has a zero deductible and no co-pays or other cost shares will be prohibitively expensive should an insurance company decide to offer such a healthcare policy.

If you would like to have fixed, predictable healthcare costs, the best option for you may be a high deductible health plan with a health savings account.  Believe it or not a high deductible plan may be your best zero deductible plan if your couple it with a health savings account (HSA).

An Aetna zero deductible health insurance policy offered to a Connecticut couple in their fifties might cost them $800 a month.  This plan has no deductible but it has other cost shares.  They could pay up to $7,500 in coinsurance each year.  This is in addition to any co-pays.

A high deductible health plan from Connecticut’s Anthem Blue Cross Blue Shield with a $2,500 family deductible might cost the same couple $600 a month.  If you divide the $2,500 deductible by 12 you come up with $208.33.  This means that this couple’s maximum costs when you add their cost shares and their premium together amount to about $810 a month.

For $10 more a month, they get a true zero deductible plan since this plan has no other cost shares.  But wait there’s more… if they have low or moderate medical expenses, they get to keep any of the $2,500 that they don’t spend.  There is still more… they can probably put the $2,500 into an IRA-like account and reduce their taxes.

Being creative with your health insurance policy can mean that you save significant amounts of money on your coverage.

A zero deductible health insurance policy may cost more than it is worth.  However, if you are willing to be creative and look into your options with high deductible health plans and health savings accounts, you may be able to get better coverage for the same or less money.

High Deductible Health Plans and Health Savings Accounts are often the best option for our clients. The insurance benefits may not be as robust as a low deductible, low co-pay plan. However, these group and private medical insurance plans often offer:

• Tremendous Premium Savings
• Tax Benefits
• Excellent Preventative Care