How to Lower Your Healthcare Premium
Health Insurance charges are on the rise, and even though wages are stagnant, insurance costs are expected to continue on their upward trend. Insurance is supposed to protect against catastrophic medical expenses, not paying for regular health maintenance cost. Here are a few ways you can save on your health insurance costs:
Exercising on a regular basis, stop smoking, and healthier diet can help keep you in preventing or improving certain disease and/or conditions. Many insurance companies are award their member with discounts on gym membership’s, quit smoking plans, health screenings, and some health products. Also, many health insurance carriers cover up to 100% of wellness care for routine check-ups, immunization and diagnostic test. They also offer preventive service sometimes with or without a waiting period. Most preventive services cover mammograms, pap smears, and PSA screening to just name a few.
A deductible is the amount of money which the insured party must pay before the insurance company’s own coverage plan begins. If you are a relative health person, a higher deductible can help you lower your monthly premiums by up to 10 to 40%.
Coinsurance is the percentage amount you and the insurance carrier share in the cost of medical cover. Coinsurance comes in various amounts from 100%, traditional 80/20, 75/ 25, and the 50/50. Ex: most plans are 80/20 which means after you might you deductible the insurance carrier will cover 80% of the charges, and you would be responsible for 20%. By changing your coinsurance you can save between to 10 to 20% more off your premium. Remember, by changing your coinsurance the more you will be responsible for more of the cost.
By increasing your co-pay, you can reduce your premium by as much as 25%, which is worth it if you’re seeing a doctor more than twice a year. But determine what the co-pay actually covers – does it cover diagnostic tests like lab and x-ray, or does it just cover the doctor visit?
Out-of-Pocket is the total annual cost you pay for health insurance coverage before the plans pays 100% of your claims. The more you agree to pay for out-of-pocket expenses in the form of deductibles and coinsurance payments the less you’ll pay in premiums.
Commonly called Catastrophic Health Insurance, they offer limited insurance coverage for routine medical or doctor visits with a high deductible. Premiums are low because the insurance is intended for major medical expenses such as hospital stays, x-ray’s, and surgeries to name a few. The high deductible that must be paid out of pocket before the insurance kicks in
Most insurance companies provide an extensive list of providers and hospitals that are in there contracted network. By going to an in-network provider you will receive a higher savings on medical care. Reason being is that these providers are contracted with the insurance carrier to provide their services at an agreed amount discounted fee. By going to an out-network provider you will be charged the non-contracted amount. In most insurance policies the carrier will pay a smaller amount and will have a higher deductible.
For Example: You go in for surgery and the doctor fee is $1000 dollars. If you go to an in-network provider, the insurance carrier will pay 80% of the bill and you will responsible for 20% of the contracted amount of $850. Know if the provider is out-network you can be charged the total bill of $1000, because there is no agreed amount with the insurance carrier. Most insurance companies do cover out-network fee but at a reduced rate of $1000, not the contracted amount of $850.
Changes in you marital status, birth of a child, and if you medical needs have changed, Can affect the cost of your insurance.
By having a better understanding of your health plan, for what is covered and not cover will help you from being surprised from any unnecessary fees. Many insurance companies offer online access where you can check your benefits, check for in-network provides and hospitals in your area check drug prices, and the ability to see how your claim was paid etc… Remember, if you have it use it!
You can lower your drug cost by asking the provider for free samples of any drug you may be taking. Most doctors have a closet full of them. Tell your provider that the drug is too expensive for your budget, many hospitals offer assistance with the cost, through the financial department. Most major store chains such as Wal-Mart, Walgreens, and CVS etc… Have prescription drug plans for $4.00. Drug maker’s operates multiple assistance programs, depending on the prescription for free or at a discounted price. Consider buying prescriptions through a mail order pharmacy.
You can find them in your local newspapers, grocery store bulletins, local library or community event. EX: Here in Indiana we have the INShape Indiana Black & Minority Health Fair where the cost is free anyone and you can receive over $1000 worth of free medical screenings.
Flexible spending arrangement (FSA), a tax-advantaged account that allows an employee to set aside a portion of his or her earnings to pay for qualified expenses. The advantage is that money deducted from your check into an FSA is not subject to payroll taxes; but the disadvantage is that funds cannot be rolled over and must be spent on qualified health care related expenses, so if you don’t use the money you’ll lose it.
Health Savings Account (HSA), and allow you to put in pretax contributions that grow tax-free and can be rolled over from year to year. Your deductible can then be paid with funds from your HSA account, or you can pay your deductible out-of-pocket and save the money in your account and to assist in paying for qualified medical expenses.
Remember, in the long run you are in-charge of your health care cost.
