With health insurance prices continually rising, many are looking for ways to cut costs while maintaining robust coverage. Today we’ll go over a few ways you can lower your bills.
Increasing Deductible Spent
There are a few different ways to save you a couple of bucks when it comes to insurance. One way is by increasing the amount you spend on your deductible. By increasing what you pay out-of-pocket, the less you will have to pay on your monthly premiums. This is an especially good tip for someone who is young, healthy, and doesn’t foresee going to the doctor often.
Staying In-Network
How important is your doctor to you? If possible, by switching your primary doctor to an in-network (HMO) doctor, you can save money by eliminating the cost of having a broad network. Be careful with this choice–narrowing your network will restrict you to a region or group of physicians.
Living Healthier
Another simple way to lower health insurance cost is by simply living a healthier lifestyle. By quitting smoking, you can lower your insurance cost by about 50%. This is due to the argument that smokers are in worse health and at a higher health risk than many non-smokers. Living healthier should also help you manage any chronic conditions that would send you to the doctor on a regular basis.
Co-Insurance Split
How is your co-insurance ratio looking? Most common ratios are around an 80/20 split. What that means is that after paying your deductible, your insurer pays 80% of the bill, leaving you with the remaining 20%. By changing this ratio, your health insurance premium can be substantially lower month-to-month.
Different Plan Options
If you are still trying to decide on a plan or are looking for a change, be sure to check out all your options. Does your spouse get offered insurance through their job? You might be able to be covered under their plan and pay a reduced group cost. Did you purchase a big brand plan off name alone? Insurance plans change from year-to-year, so by shopping around, you might be able to find more coverage for less or even better benefits.
Subsidies
Are you able to receive subsidies? A subsidy is financial assistance that helps you pay for something. It’s not a loan; you don’t pay it back. You can be eligible for two types of subsidies, one being an advanced premium tax credit. This lowers your monthly health insurance premium. The other is cost-sharing reduction, which reduces the out-of-pocket costs you pay during a policy period.
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