Customizing Health Insurance Plans To Save You Money
With health insurance rates skyrocketing, we all would like to experience a little bit of relief. And you may be surprised to know that there are actually some things you can do to reduce your health care costs without losing coverage you don’t need. First you must consider that everyone has diferent needs and in order to find the best plan for you, you’ll need to do some research and legwork. And as you do, you’ll likely discover that some benefits are grossly overpriced for the dividends they provide, and some benefits are a good value. Here are some tips to think about as you’re looking for a new plan:
Increasing your deductible is one thing that can help. The deductible is the amount of money you must put out each year before your insurance begins paying. Most Americans don’t have many doctor visits each year, so increasing your deductible could save you hundreds of dollars per year. In some cases, it has been shown that by increasing your deductible by an additional $500, you could save the same amount in yearly insurance premiums.
Add a doctor visit copayment with limited visits. The copayment is a fixed amount that you pay each time you go to the doctor. It usually is $15-$40. If you don’t have this benefit, you’ll have to pay the entire amount each time until you have reached your plan’s deductible. If you are planning to visit a physician a few times a year, this can save you money, though having this benefit usually adds to your monthly premium. Get around this by setting a limit of yearly visits that are covered by the plan. That way, the plan will only cover what you need, while lowering your premiums.
Most plans today are either PPO or HMO, with both offering coverage within a pre-determined network of doctors and medical caregivers. PPO’s often allow a wider spectrum of specialists while HMO’s require you to choose a primary doctor. If you require a visit to a specialist under a HMO plan, you won’t be covered unless referred by your doctor. Selecting an HMO will reduce your coverage, but the cost to you will be less.
Getting re-underwritten is one of the best kept secrets for how to save money. The process of underwriting is when insurers write a policy based on factors that they know about you, such as pre-existing conditions, current health and future risk. Most of them also put you into a “pool” of similar policyholders. The problem with that is that if a large amount of the pool members get ill, then your premiums go up even if you have been healthy as a horse. So it is recommended by industry insiders that changing policies each year or changing carriers each year or both will likely save you money. Navigating your way through the complicated world of the insurance industry doesn’t have to be difficult but in order to be successful, you will have to put some effort into it.
