With 2009 health insurance renewals behind us now, many of us are left with the same coverage, but higher premiums. Here are 3 tips you can take advantage of to survive high health insurance costs for the next year.
Tip 1
Raise Your Deductible
By raising your deductible, you can lower your monthly premium. On most plans, your office visits and prescriptions are covered with a copay before you are required to pay your deductible. If this is the case with the plan you are on, raising your deductible may only change the amount you are willing to pay before your coverage kicks in, and the maximum you will pay toward your co-insurance once it does. It’s a great way to lower your plan cost.
Tip 2
Reapply
Depending on how long you have been with your insurance company, you may be eligible to reapply for the exact same plan, with a lower monthly rate. When you apply and are accepted as an individual or family, you are grouped with a number of other individuals and families. As time goes on, that group has claims. Those claims are paid by raising the rate a little extra at renewal. So, on renewal, you may be paying for inflation plus other peoples claims. After a couple of years, it makes sense to reapply, especially if you or your family have remained healthy.
Another option is to reapply for a different insurance company. Each companies rates change on a yearly basis. Besides that, there are a lot of changes happening all of the time that can make looking at a different insurance company beneficial.
Tip 3
Move to a Qualified High Deductible Health Plan
Moving to a high deductible, catastrophic health plan is an excellent way to drastically lower your monthly premium, and still keep major medical coverage for you or your family. It’s true your risk increases, but the good thing is, most insurance companies still cover some preventive care before the deductible. Some also have an accident rider you can add, so minor accidents are covered before you are required to pay your deductible.
Best of all, if the plan is a “Qualified High Deductible Health Plan” you can open up and use a health savings account to pay for your medical expenses pre-tax.
Take some time each year to review your plan and make sure you get the best coverage at the most affordable price.
Sincerely,
Jared Balis
