As health care reforms continue to progress and health insurance professionals continue to worry about their job security, it is commonplace to wonder how the average person can save money on their health insurance premiums. Premiums have sky-rocketed in recent years due to increasing health care costs. There are several ways though, to lower health insurance costs.
Things You Will Need
You will only need a copy of your current health insurance plan and the phone number of you insurance agent.
1. The first thing you may want to consider is raising your deductible. There are many insurance agents that recommend lower deductibles. This may be due to the fact that lower deductibles lead to higher premiums, which in turn lead to more commission. Our agency determines the financial situation and health status of each individual client to determine which deductible best suits their needs. Raising your deductible from a $2,500 to a $5,000 can lower your monthly premium by up to $150 per month in some cases.
2. Consider going with a value insurance plan. There are many people that never visit the doctor or hospital. Most basic insurance plans contain coinsurance levels of 80%/20%. However, there are plans out there with 75%/25% coinsurance levels. You may have to pay more out of your pocket, but your monthly premiums will be trimmed down slightly.
3. Consider switching from group insurance to individual and vice-versa. Insurance companies offer employer-sponsored coverage to groups with standard rates. These rates can be significantly higher than individual rates, but they are guaranteed issue. If you have a relatively large family with health issues, you may be able to purchase a group policy cheaper than you can purchase individual insurance. The same is true for the other side. Individual policies are underwritten on a person-by-person basis. If your family does not have any significant health conditions, an individual plan may be the way to go.
4. Plans with dental
or vision coverage can increase the monthly premium amount up to $100 per month. Take time to determine how often your family actually visits the dentist. Some families will often only visit the dentist once a year for a check-up. This visit can be paid out of pocket and may not cost more than $150. This will save significant cash over time.
5. Consider changing insurance companies. As often as companies raise rates these days, it may be wise to change from Blue Cross Blue Shield to Aetna or CIGNA. With new or revised benefit plans, certain companies may become more competitive than they have in the past.
Overall, insurance premiums will continue to increase. However, there are ways to deal with exorbitant rates. These are just a few of the ways to think outside the box and get ahead when it comes to health insurance.
Tips & Warnings