With health insurance prices continually rising, many are looking for ways to cut cost, while not lowering their amount of coverage. Without having to shop around to much and possibly switching over your plan altogether, today we will help you with tips on how to lower that increasingly high insurance cost.
Increasing Deductible Spent
There are a few different ways to save you a couple of bucks when it comes to insurance cost. One way is by increasing the amount you spend on your deductible. By increasing the more you pay out of pocket, the less you will have to pay on your monthly premiums.
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 for a broader network of doctors to choose from. Be careful with this choice. If your favorite doctor is out of network, your cost to see them can be very large.
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.
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 with you paying a higher amount, your health insurance premium can be substantially lower month to month.
Different Plan Options
If you are still trying to decide on a plan 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 plan off name alone? Insurance plans change from year to year and by shopping around you might be able to find more coverage for less or even better benefits.
Are you able to receive subsidies? A subsidy is a 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.