Quick Insurance Tips

Private medical insurance prices are influenced by several factors.  You may be able to lower your cost for health care by eliminating unneeded coverage, by increasing your fitness level or by shopping around for coverage.

Medical insurance is expensive today because the cost of a hospital stay and the cost of a doctor’s visit are expensive.  The cost of health care rises each year as healthcare providers ask for more, more expensive procedures become available and hospitals charge more for their rooms.  By reducing your insurance company’s costs you may be able to reduce your cost as well.

You may be able to reduce coverage for certain benefits that you don’t need or that are more expensive than they are worth.  Maternity insurance, prescription coverage and dental insurance may be either unnecessary or over priced.  People often pay extra for a policy that includes maternity insurance long after they have had their last child.  Prescription coverage and dental coverage will often have relatively low annual limits.  If so, the amount you would have at risk if you eliminated one of these benefits is the amount of the coverage limit less the cost of the coverage.  This may mean that dropping the added cost is a good idea.  Spend some time looking at the limits and the costs of these benefits and do the math to make sure that they are worth keeping.

Raising your deductible may also reduce your costs. By taking more or the risk, you can often reduce your costs by a lot. In some cases the amount of extra risk you take may be less than the amount of money that you save. Make sure than when you compare your premium savings to an increase in your deductible you multiply the premium savings by the appropriate factor to get the annual savings. Your deductible is probably based on a calendar year. You should compare it with the annualized savings to make an apples to apples comparison.

If you have been charged extra because of a medical condition or because of your weight, you may be able to reduce or eliminate the surcharge.  You should find out what needs to happen in order to get your rate reduced if this is the case.

Often an insurance company will reduce or eliminate the surcharge if you have had a period of time where you haven’t needed treatment.  If your preexisting medical condition has gotten better, you may be able to get your rate reduced.  You may need to lose a small amount of weight or reduce your blood pressure readings by a small amount.  Knowing what requisite numbers may motivate you to do the things you need such as exercise or eat better.  You may be able to save more than just money by doing what it takes to get your health insurance premiums down.

Shopping around is a tried and true practice for saving money on health insurance, cars and many other things.  There is often a large variance in medical insurance prices.  You may find that you can save hundreds of dollars a month by switching to another company or even to a different type of policy that is offered by the same health insurance carrier.

There may be several factors that you have control over that will impact your cost for health insurance and health care in general.  Reducing your coverage in unimportant or unneeded areas, reducing surcharges for pre-existing conditions and shopping around can all help you bring your costs for health insurance down.

Today most health insurance companies use provider networks for their policies.  You should know the advantages and disadvantages of plans that use provider networks.

Advantages of Health Insurance Provider Networks

The advantages of a policy with a network of doctors, hospitals and other providers are the lower cost for medical care and the lower premiums for the policy.

When you use a doctor or other provider that participates in your health insurance carrier’s provider network the provider charges less than they would if you didn’t have insurance.  The lower rate is called the “negotiated rate.” The insurance company or you will pay a rate that the carrier has negotiated with the provider.  This rate can be half of the standard price for a given service.

This means that your costs are lowered in two different ways.  First, the insurance premiums you pay for your policy will be lower than they would be for a similar policy that does not use a network.  Second, if you have to pay for the service out of your pocket because you haven’t met your deductible, you will pay the lower negotiated rate.

Disadvantage of Health Insurance Provider Networks

The disadvantage is that you will pay more for care if you choose to seek treatment from an out–of-network provider.  In some cases, you will have to pay the entire cost of care received from a doctor, hospital or other provider.  In other cases you will pay a higher percentage.

Emergency care is often an exception to this.  Your share of the bill may the same as it would be if you used a network provider if you use a non participating doctor or hospital during a medical emergency.

It is important to know how your policy covers you when you are out-of-network.  HMO plans will typically cover nothing but emergency care if you are out of network.  PPO and POS plans will typically cover some costs when you use a non-participating provider.  However, you will often have a higher deductible and/or a higher coinsurance percentage.

Special Health Insurance Network Issues

It is important to be able to have access to in-network care at all times if possible.  If you are a college student, ideally you want an insurance policy with a strong network near your parents’ home as well as near your school.  “Snow birds” and other people who have secondary residences that they spend substantial amounts of time in will have similar concerns.

You may be paying for coverage you don’t need, have the wrong type of coverage or simply paying too much if you haven’t reviewed your coverage recently.  Your needs change and this may mean that you need more, less or different coverage.  Insurance policies go up and (occasionally) down in price on a regular basis.  The plan that was priced best last year might not be today.  For these reasons, your insurance policies and your need for insurance should be reviewed regularly.

If you purchased your health insurance policy several years ago, your needs may have changed dramatically since then.  You may be ready to have children.  You may have a new child.  You may have a child who is now an adult.  A few years can mean major changes for many families.

At that time, you may have been concerned about your young child’s frequent doctor’s visits.  That child may not bee so young now and you may want to purchase a different kind of policy.

You may have needed insurance coverage for pregnancy then but not need it now or vice versa.  It is costly to pay for maternity coverage and not need it.  It is also costly to need it and not have it.

You may have purchased your plan before the high deductible health plans and Health Savings Accounts were available.  There are significant tax advantages to these programs and you may want to investigate these plans.

Medical insurance companies change their rates about every 12 months.  The policy you purchased three years ago may have had rate increases that are above the average for similar policies.

If your health has improved you may benefit from purchasing a new policy.  If you’ve stopped smoking or lost weight you may qualify for a lower rate.  Some pre-existing medical conditions are viewed more favorably by insurance companies as they age.  Many insurance companies will charge a higher rate if someone has had certain types of surgery within the last year.  If it is now five years and there has not been a reoccurrence, you may qualify for standard rates, but only if you reapply.

You or your family has probably changed in the last several years.  Health insurance rates change every year.  The medical insurance industry changes all of the time.  For all of these reasons, reviewing your coverage and getting current private health insurance quotes is likely to help you save money.

Should you pay for your insurance on your credit card?  Will this make your insurance cost more or less?

Many carriers are encouraging their policy holders to pay via credit card today.  This has both pros and cons.  It may mean that you have coverage when you need it.  It may also mean that you are paying 20% extra for your policies and are getting deeper in debt.

By allowing your insurer to debit your credit card for your auto insurance or health care policy, you may keep your insurance in force longer.  This may mean that an accident or other even is covered when it might not have been. Forgetting to pay an insurance bill can cost you thousands or even millions.  There is definitely a positive side to paying for insurance via a credit card.

If you have a medical condition or have gained weight that you acquired since you purchased your health insurance policy, this can be especially important.  Missing a payment may mean that you are denied coverage or charged extra for the same coverage you had before.

Your health insurance company is not allowed to drop you because of a significant health condition or a state of obesity that you developed since your healthcare policy was approved unless you cancel your policy or allow it to lapse.  If you do so, you can be treated as if you are a new client.  This can mean that you are subjected to medical underwriting all over again.

If you are in the habit of paying your credit cards off each month before any interest is assessed, there no downside to using a credit card to pay your monthly insurance premiums.

However credit is overused today.  How would you feel if you were charged 20% more for everything you buy because of your race, gender or religion?  When we use a credit card to pay, we often pay an extra unnecessarily.

Insurance plans that will charge your credit card by default may be willing to send you a bill in the mail or bill a checking account.  If you are concerned about excess interest charges, you may want to contact your insurer about this.

A preexisting health condition can prevent you from qualifying for medical insurance.  Timing your applications and medical examinations can keep you from being denied coverage in certain situations.

Timing your Medical Exams

A preexisting condition becomes an insurance issue when one of three things happens.  You receive medical advice for the condition. Your have symptoms that would cause a prudent person to seek medical advice.  Your insurance company discovers the condition during an exam.

If you are considering changing insurance policies you may not want to see a doctor until you have been approved by the new company.  Why?  If you are genuinely unaware of a medical condition and haven’t had symptoms that would cause you to seek medical attention an insurance company should not hold that condition against you unless it is discovered during their underwriting process.

If you have a medical examination just before applying for a new policy, your physician might discover a condition that would keep you from being approved for your policy.  You may be better served if you wait until you are covered by the new policy before you are examined.

Of course, there may be situations where waiting even a week to have an exam could have serious repercussions.  On the other hand if a serious condition is discovered a week earlier the timing may save your life.

However, if the treatment for the condition isn’t covered because your old policy expires shortly after your diagnosis, you may not be able to complete your treatment.

This is not medical advice. You will have to weigh the pros and cons of waiting verses not waiting to have an exam.

Aging of Preexisting Conditions

Not all medical conditions get worse with age.  Some are treated more favorably as they age.

A person who was diagnosed with a condition too recently may be denied coverage even for a minor condition.  This is because the insurance company wants to make sure that the diagnosis was accurate and that the treatment prescribed works.

A person who was diagnosed with asthma a year ago and has their symptoms controlled with medications will likely be approved for a medical policy.  A person who was diagnosed a week ago may not be.

Often people with serious conditions like cancer are able to qualify for medical coverage.  This depends on the type of cancer and how long it has been in remission.  Five years without treatment or need of treatment can be enough for many cancers.  The waiting period for other cancers is much shorter.  For certain others the waiting period is longer.

Ask your insurance agent if he or she for guidance if you are concerned about being denied.  You may be able to keep a rejection off your insurance history simply by waiting to apply.

If You are Denied Health Insurance

Be aware that different insurance companies may underwrite the same condition in different ways.  Be sure to check with several companies if you have been denied insurance due to a medical condition.

You should also be aware that different types of policies will have different rules.  A group health insurance policy may accept you regardless of your medical history.  This may be true with state-sponsored health care programs.

Until we have Universal Health care, preexisting conditions will have a devastating impact on certain families and individuals.  You can reduce your chances of being denied a health insurance policy by delaying a health exam until after your new policy is effective (so long as it doesn’t jeopardize your health).  You can also reduce the chances of getting a denial by waiting to apply until a recently diagnosed illness is considered stable by a new insurance company.

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.