Save Money on Health Insurance
Health Insurance costs a lot but not having any costs more. There are ways to save money on insurance, but skipping coverage isn't one of them. Medical bills from even a minor car accident can deplete your savings and a major illness can push you into bankruptcy.
Sensible Ways to save money on Health Insurance:
- Compare Health Plans – Unfortunately, this is a tough process because there is no such thing as standard coverage. Benefits and costs vary widely from plan to plan. If you have choices, examine each one closely to find the best deal. The lowest premium isn't always the cheapest plan. What your insurance covers is as important as what you pay up front. Ultimately, the cheapest Insurance plan is the one with the best price for the benefits you're most likely to use.
- Consider what Health Benefits are necessary for you - You can count on your health insurance to cover you for a hospital stay. Most policies cover doctor visits, but benefits such as mental health, prescription drugs, maternity, dental care, etc. may be optional and when excluded will result in cheaper health insurance.
- Take Advantage of Group Health Coverage - If your employer offers health insurance it is almost always a better deal than anything you can get on your own, particularly when it's employer-subsidized, even if you're young and healthy. If you're NOT young and healthy, it's definitely a better deal.
- Freedom of Choice? – Health Plans with the most comprehensive coverage at the lowest out-of-pocket cost require you to use a specified network of hospitals, doctors, labs, and other providers. The more flexibility you demand, the more you'll pay, in either premiums or co-payments.
- Make the most of Spousal Health Coverage - Working couples with health insurance from two employers may be able to get more or pay less than one-income couples. you must sort out whether it makes more sense to have two policies or for one of you to cover the other. If you have kids, you need to decide who's going to cover them. Be warned even with double coverage, a couple can't collect more than 100% on the same claim.
- Use Available Tax-breaks - Ordinarily medical expenses, including insurance premiums, are not tax deductible until they exceed 7.5% of your income. However, if you're self-employed, you may be able to deduct 45% of your insurance premium from your gross income or if your employer offers a flexible spending account, you can get a tax break without meeting the threshold.
- Look for a Subsidy - If your income is very low, if you're permanently disabled or if your medical expenses are extremely high, you may qualify for federal or state-subsidized insurance, such as Medicare or Medicaid. Regardless of your ability to pay, you may be qualified to receive free primary care through public health clinics.
Consider "Catastrophic Only " Health Coverage - If you are
generally healthy and use few medical services, you can cut premium
costs substantially by buying "catastrophic" coverage. This
is an indemnity policy with a very high deductible, perhaps as much
as $2,500. Assuming this much financial risk can slash your premium
by 50% or more, depending on your age. Don't try to trim your premium
by reducing coverage on the other end, though. Make sure your insurance
has a high maximum payout, at least $100,000, preferably $500,000. Also
make sure you understand their definition of "catastrophic."
