Sure, it’s great to have health insurance coverage, but does it have to cost so much? This is probably something we have all thought of at one time or another – especially families and business owners. While our disposable income seems to decrease annually, the cost of health insurance is rising. So, how do you cut back on health insurance costs without eroding their level of care?
Consider Group Coverage
If you have an individual plan (just you or your family), then you are probably paying more than you have to by not taking advantage of group plan coverage. It costs an insurance company less to have a group of people under a plan than to administer and provide coverage for each person separately.
There are many organizations that have group plans that you can join, such as the National Association of the Self Employed. Small business owners with employees can benefit by looking into alliance pools, where a group of organizations act together to purchase insurance. In many cases, these plans are headed up by the local chamber of commerce.
You can also look into any associations or memberships you may have. These organizations often have a connection for health insurance. Examples are labor unions, trade groups, alumni associations and lodges. Even if the savings are minimal, you may get better coverage instead.
Reduce Coverage
Perhaps your financial or health situation has changed. This is a good time to re-evaluate your coverage. Are your kids out of the house? Do you travel out of the country frequently? Perhaps you don’t need as much coverage as you needed in the past. You might have chosen your plan a few years ago and now realize that you might have too much coverage for your needs. Regardless, you can save by cutting back on your coverage.
Many plans include extra bells and whistles that you may not need – such as an allowance for alternative medicine or eye glasses. If you don’t need these items covered, you might not want to pay for them every month. Consider a plan with fewer options but that still has adequate coverage for what you really need.
Increase your Deductible or Co-Payments
If you rarely end up in the hospital, you are paying higher premiums for a lower deductible. Just as in reducing coverage, you can save by going for a plan with higher deductibles or choosing higher co-payments (the pay-per-use cost).
One area where you can save is with prescriptions. If you have many regular prescriptions, this may not be a good option. However, if you are in generally good health, you should choose a plan where you pay a higher rate for prescriptions. Your premiums will be lower and you can put the money you save aside for other emergencies.
However, there’s another point to be made here. If you won’t be able to afford the deductible when it is necessary, it may not be a good idea to save monthly on premiums – as you will end up in financial straits should you require medical care. There are other options (such as Health Savings Accounts) which put a portion of your premium away each month in a tax-deferred account. Policy holders can use the extra cash to pay for unexpected medical costs. This may be a safer way to go.
BIO: This post was written by Jodi Smith of HealthInsuranceQuotes.org.com. This site provides the resources you need to compare top health insurance quotes online.

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