How to Save Money on Health Insurance


Financial, Investment, Wealth Building / Wednesday, December 6th, 2017

With the ever-increasing cost of health care each year, most of us would consider ways of saving money through every available opportunity as they present themselves. Looking only at what health insurance offers today tends not to give the succuor it was meant to give. With a payment of not less than $7,100 in health insurance premiums for an American family of four in the year 2017, this makes the search for money saving tip a must have.

Though not negotiable, health insurance requires a knowing what to do to save money on health care. Now the main question is, how can I save money on Healthcare? Let us take a look at some available options you can explore to reduce the cost of your health care.

 

Explore the Options You Have At Work

To start with, the very first thing to consider is to know the options you have when it comes to health insurance offered you at your workplace. You may need to look the other way in case you are going to an individual plan.

Are there health insurance benefits offered by your workplace? If yes, then you need to carefully look at what they have to offer you. Employer-based insurance is the most common in United State accounting for 55.7% of the population. This points to a likelihood of having a package in your place of work that you can benefit. Though the workplace is like to pay for a group plan and this comes with limited options but the good side is that your employer bear part of the cost of premiums with you, and this saves you some money.

The benefits of employer-paid group plan include the following:

The cost of premiums is shared between you and your employer so it saves you some considerable amount of money compared to you going on an individual plan.

Your premium paid can be made as a form of pretax and this applies to premium contribution from your employer and this will save you some tax.

Your employer is saddled with the responsibility of choosing the health insurance company and which plan to choose.

On the other hand, for those whose employer do not offer health insurance or individuals who are self-employed, you can consult the service of a health insurance pro to put you through what is best for you. You don’t have to pay through your nose on insurance cost with the right health insurance pro at your aid. A pro can help you analyze what your situation is and help you pick the right health insurance package that will meet your need and fit your pocket.

Individual plans have its own advantages too. They include

You have the opportunity to choose the company and plan that fit you best.

You have the flexibility to change jobs without losing your coverage.

You have the opportunity to choose plans that allows you to see your preferred doctor

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Save money by Knowing How Different health Insurance Plans Work

Health insurance plan comes in three options that may not be strange to most people’s ears but definitely comes with some complexities as to how each one affects health insurance cost. There are four types of health insurance network, also called managed care plans. These four health insurance networks are group of providers under one network that have fashioned out a means of offering low cost service to individual members registered under their network. This arrangement provides some cost saving opportunity to end users.

The four health insurance networks

Health maintenance organizations (HMOs)

This network provides people registered within their network access to certain clinics, hospitals and Physicians that also belong to this network. Eligibility to access this network requires you to live within a particular service area of HMO. The service area limits the number of people that can access it.

Point-of-service (POS)

POS plan allows members to choose a particular primary care physician. This physician will refer you to a specialist when there is a need and you are not limited to physicians within the network only. Out-of network services come with a higher cost to you on the long run.

Preferred provider organizations (PPOs)

Individual that belong to the PPO health insurance network have access to discounted services from providers that belong to their network. PPOs allows its members to get out of their network to access health care from other specialist without a referral but this comes with higher cost.

Exclusive provider organizations (EPOs)

EPO plan gives you the opportunity to use services provided only by the network but with an exception to an emergency.

Health Insurance Tiered Plans

Health insurance plans that are tiered estimate the cost of the payment you make out-of-pocket compared to what your insurance covers. Plans that have lower out-of-pocket costs will genrally leave you with high monthly premiums and vice versa, plans with high out-of-pocket cost will give you a lower monthly premium.

The question is how to determine which plan best suites you? This article will not be able to cover this as there a many factors to be considered to come to logical conclusion of what is best for you. The best option is to consult a health insurance pro to help you determine which option is right for you.

High Deductible Health Plan (HDHP)

This class of health care plan is a plan with high deductible whn compared to common health insurance plans. HDHP are plans with deductible of not less than $1,300 for an individual and $2,600 for a family.

High deductible plan do have lower monthly premiums and this a form of savings for you on a long term. Definitely, it has its down side. HDHP may not have vision, dental and prescription drugs covered with the high deductibles limiting what you can get from the plan. The good side is that HDHP can be a form of savings for you through the tax- free savings provided through Health Savings Account (HSA).