Compare health insurance plans to save money
You won't be surprised to learn that a) health insurance is expensive, and b) all healthcare programs are not created equal. These two realities should lead you to carefully compare health insurance programs you're considering to both save money and select the best plan for you.
Don't just compare monthly premiums, as the most appealing option from a cost perspective may have major "gaps" in the coverage you might need.
Here is a more effective way to compare health insurance plans from competing cmopanies. Compare coverages first. While affordability is important, safeguarding your health is the undisputed number one priority.
Before examining co-pays, monthly premiums, deductibles, or other out-of-pocket costs, carefully compare what issues are covered, waiting periods, and exclusions. This part of the comparison may eliminate some options, regardless of premium cost, because they simply don't offer sufficient protection.
After eliminating those options that don't work for you, continue your evaluation by comparing projected out-of-pocket costs. For example, co-pay amounts can vary widely. Common co-pay charges often range from $5 to $20 per office visit to your doctor. Different – typically higher – amounts often apply to some diagnostic tests, emergency room visits, or specialized treatment. If you take medication on a monthly basis, the co-pay for prescription drugs is also an important consideration.
Be clear on your out-of-pocket costs for injuries or illnesses that may require surgery and/or hospital stays. For example, if one health insurance plan specifies an "80/20 co-insurance" feature, the program will pay 80% of your surgical or hospital charges, but you'll be responsible for the remaining 20%.
Understand that this portion could still involve hundreds or thousands of dollars depending on the reason for your hospital residency. A plan that covers 100% of these charges may be better for you.
After you've examined and compared the available health insurance coverage and analyzed the prospective out-of-pocket costs you will face, look at the monthly and annual premium costs of each plan you seriously consider. In some cases, the lowest premium cost will be the best choice.
However, the discrepancy in coverages and/or co-pays might indicate that a health insurance plan with a higher monthly premium makes more financial and medical sense to you. Keeping your focus on protecting your health first and satisfying your budget second should demonstrate which health insurance product is your best option.
Here are some additional steps you can take to save money on health insurance and treatment costs on a regular basis. There is no single "silver bullet" to save you huge amounts of money, but consistency of effort will, over the longer term, save you dollars while keeping your health protection first class.
Four additional ways to save money
1. Generic medicine
Request and use generic medicine and drugs whenever possible. In many – but not all – cases, there are generic drugs that are identical to the better known "name brands" that can dramatically reduce the cost of prescription medication.
For example, a month's supply of Lipitor, for cholesterol control, might cost in excess of $225, while a generic, like Lovastatin, might cost around $45.
Please note that these are not the same composition, as there is not yet a generic duplicate for Lipitor, but many doctors and people find little difference in effectiveness. Always consult with your physician before purchasing a generic drug since your doctor may prefer the name brand for very good reasons.
2. Negotiate prices
Negotiate prices for services. Unlike many financial issues, where "everything is negotiable", health insurance may offer limited opportunities to negotiate costs.
However, there are good reasons to consider negotiating some costs to save you money. Your health insurance plan or medical provider may be somewhat flexible on certain issues to give you such an opportunity.
3. Consider the timing
Consider postponing or refusing certain diagnostic testing and non-essential treatment. While you should obviously not refuse treatment or testing when it is essential for your continued good health, much of the medical community has come to believe that every conceivable test should be conducted to assist their diagnosis of potential problems.
For example, unless you have a condition that requires three or four blood tests per year, an annual test should be sufficient, saving the $100 plus per blood test fees for multiple procedures.
4. Review coverage every year
Review your health insurance annually. Even if you were a world-class athlete when you first purchased your health insurance plan, health and finances can change dramatically over the course of twelve months.
Review your coverage and costs annually to verify they are sufficient and budget-friendly. If things have changed, make the detailed comparison of available plans as described above to save money and keep sufficient coverage.
Saving money on your health insurance can be challenging, but you can accomplish your primary goal (good coverage) and keep costs within reach by using these suggestions.
