Lost Cost Health Insurance
- Sign up at work. If you have the opportunity to purchase health insurance through a group plan, most of the time it's far less expensive than purchasing an individual plan because you get a group rate and most of the time employers pay a portion of the cost. If the price seems exorbitant, there might be several reasons. High claims in previous years, an older work population and failure on the employer's part to offset any of the cost of the premiums are all factors that increase employee's prices. Check out prices for individual health insurance in this case, particularly if you're young and in good health. Make certain you compare benefits when you do this.
- Check to see if there's a group plan through any of the organizations where you are a member. Many large organizations offer these types of plans and the premiums are frequently lower than those of individual plans are since it's covering a large number of people.
- Investigate all the options by looking into health insurance created specifically for groups of people in your type of business. Some small business associations also offer health insurance, as does the AMA, Bar Association and other occupation-specific groups.
- Shop for the best rates. You might be surprised at how wide a gap there is in health insurance companies' premiums. That's because the rates often reflect the amount they paid in claims the previous year. Shopping both online, via the telephone and even your homeowners, life or auto agent can pay off in big savings. Make sure to compare the coverage if you think you found a bargain to see if it's the same as the others' more expensive policies.
- Choose a new type of plan. An HSA, health savings account, with a high deductible health insurance policy is one opportunity for saving money on health insurance. Don't confuse this with a flexible spending account. A flexible spending account is normally part of a cafeteria plan. In this case, the money is lost at the end of the year if you don't use it. The money in the HSA takes care of the smaller bills until you reach the deductible. If you don't use it, it remains yours, grows tax-free and rolls over until you need to use it. If you remove money for a legitimate medical expense, there's no taxation. Watch out if you want to use it for a TV or other non-medical expense. You'll not only pay the tax but also a 10 percent penalty on the withdrawal.
- Look for managed care plans that have preferred providers. Frequently policies that have preferred providers offer a lower premium. You do have to pay copays but normally they're small and you still have coverage for catastrophic illness. Before you commit, check the list of physicians. Don't purchase the policy thinking you'll change doctors until you find if the doctors on the list accept new patients.
- Look into the programs offered through your state. Some states offer coverage for lower income individuals, such as Medicaid. There are also programs created specifically to provide affordable coverage for children. Much of the time, children qualify even if your family's income is as high as $44,500 for a family of four. There may be a plan to fit your situation.
