Insurance rates are going up as always. And for many of us there comes a time when all the saving tips and suggestions start to matter a lot. Spending a larger part of your family budget on health coverage and receiving rate increase notices from the insurance provider each year isn’t quite pleasant, to say the least. So if you really want to cut your insurance costs, here are 10 practical tips on how to do it right.
– Raising the deductible is a must. A deductible is the amount of money you have to pay on your own before the insurance coverage kicks in. That is if you have $250 yearly deductible, all the services you receive below that amount should be paid out of your pocket, and when the amount is exceeded your coverage starts to apply. However, such a small deductible will cost you thousands of dollars in premiums. Raising your deductible to a higher level will instantly reduce your premiums. However, make sure to set the deductible to the amount your budget can afford. Say if you can’t spend $3000 on medical bills during the year, set to a smaller deductible.
– Having numerous policies will pay off. Quite a lot of smart insurance agents recommend their customers buying various policies and combining them, instead of buying one-for-all plans. For example, combining a basic health plan in conjunction with an additional critical illness or accidental policy will cost you less than if you were to include these types of additional coverage into your plan.
– Analyze your copay benefits. Sometimes the amount of copay benefits aren’t just worth the additional 25% of insurance premium you pay for them. See how often you go to a doctor each year, how much money you spend for each visit and adjust your copay and deductible respectively.
– If you have a moderate income in your household you may want to apply for a government insurance program. Many families with modest income have individual plans for grown ups and CHIPS coverage for their kids, which allows saving a lot of money on individual health insurance.
– Think about H.S.A (health savings account). This form of health insurance has become quite popular lately due to its lower premiums, additional saving options and tax advantages that ordinary insurance plans simply don’t offer.
– Start living a healthier life. Quit smoking and drinking, don’t do drugs, start exercising on a regular basis – make everything to improve your health condition, and your healthcare costs will decrease. And so will the insurance rates, if you do everything right.
– Increase your RX deductible. If raising the yearly deductible is something you don’t want to do, you may simply increase your RX deductible. With some plans you’ll keep your deductible low even if buying generics.
– Choose a plan that lets you resign of some services. For example, if you are a man or an older woman without children, you probably don’t need any maternity or childbirth coverage, so why paying for that? Choose a plan that lets you drop useless types of medical services you won’t need and you’ll save some money.
– In case your main job doesn’t offer group health insurance, you may want to apply for a part time job that does. Not only you will gain additional income but will also save money with a group insurance plan.
– Shop around for better rates. Always shop around before purchasing a plan, try getting at least 3 quotes from different providers for the same amount of coverage, and only then apply to the one that is most competitive.