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How to Lower Health Insurance Premiums

By Edited Nov 13, 2013 0 0

If you are self-employed you have to bear the burden of paying for your health insurance without the help of an employer, or if you are a small business owner using a small business health insurance plan, you probably have high health insurance premiums that you would like to lower.  Health insurance costs are on the rise and the topic of much debate.  Ignoring the national debate on health care and whether it should be mandated, health insurance coverage is incredibly important and something one should not go without.  The cost of health care without medical insurance is much higher that with.  However, everyone is always looking to lower costs, so if you are looking for a way to lower your health insurance premiums, check out this articles for ways to lower your health insurance bills.  However, please be advised that some of these suggestions for lowering your health insurance premiums do involve taking some of the risk of covering the costs of your medical care onto your own shoulders.


Switch to Catastrophic Coverage

If you are healthy, have few prescriptions, and are not pregnant or planning to become pregnant, a catastrophic health insurance policy may be all the coverage that you need. Catastrophic coverage only covers you in the event of an accident or unexpected illness, but catastrophic coverage has the cheapest health insurance premiums you can find, in some cases it is well under $100 a month for an individual. You can search online to compare insurance quotes. You can also apply online and, in some cases, be insured within 24 hours.


Increase Your Deductible & Lower Your Premium

A deductible is the amount of money you pay out of pocket before your insurance company makes payments. If your health insurance plan includes a deductible (not a co-payment), you can lower your monthly premiums by increasing your deductible. You will pay more out of pocket if something happens, but a higher deductible and a lower monthly payment is a safer option than going without health insurance because you can't afford to pay the monthly premium.


Pay Your Premium Annually for Big Discounts

If you have the money on hand and are looking for big savings, you can often get a cheaper rate on your health insurance by paying for the full year upfront. Most health insurance companies will substantially discount your health insurance premium if you pay it all at once.


Open a Health Savings Account (HSA)

A Health Savings Account (HSA) is the government's way of helping to make health care more affordable for people who work for themselves or run their own small business. A Health Savings Account allows you to put a certain amount of your earnings into a tax-deferred savings account to cover the cost of medical expenses. By combining this with a cheap high deductible insurance policy, you pay fewer taxes on your HSA earnings and use them to pay the deductible on your health insurances if it becomes necessary.


Take Your Health Insurance Deduction

When you file your taxes, don't forget to take your health insurance deduction. Even if you don't itemize all expenses, you can deduct up to 70% of your health insurance costs from your income when you file your taxes, especially if you have self-employed health insurance.



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