How To Save On Your Medical Insurance

If you are looking to reduce your health care costs without losing coverage, don't worry, it can be done. Some of the benefits offered by health insurance companies are overpriced for what you get, and other benefits offer a good value, based on certain needs. You will be required to do a little bit of legwork and research to determine what plans are the best for you because none of us have the same health care requirements. But the possibility of saving hundreds of dollars each year on premiums is a benefit that cannot be overlooked. Here are a few tips you may want consider:

Increase your deductible. The deductible is the amount you'll have to pay each year before your plan begins paying for your care. Unless you anticipate any upcoming illnesses, increasing your deductible can save hundreds. Insurance company insiders have revealed that providers have a rating system that allows some to decrease their premiums by the same amount of a deductible increase. In other words, if you increase your deductible from $500 to $1000, your rates may go down by $500. It is a wash.

Adding a limited visit restricted doctor visit co-payment is another little known way to save on premiums. The co-payment is a certain amount that is fixed each time you have an office visit, and the amount is usually somewhere between $15 and $40. If you don't have a copay, then you have to pay the entire amount of each doctor's visit until you reach your yearly deductible amount. However, if you think you will be visiting the doctor a few times during the year, the copay can save you money. This feature usually adds to the cost of a plan, but by setting a limited number of visits which are covered, you can save money and come out ahead.

Choosing a plan with a smaller network can also be an advantage. Most plans today, whether they are an HMO or a PPO, will offer coverage within a specific network of doctors and hospitals. Chances are you won't need to see the wide variety of specialists often available. PPO's allow you to choose physicians outside of your plan, but they charge a premium as an incentive to stay within the plan. HMO's however, will require you to choose a primary care doctor who is in the system, and won't allow you to see specialists unless they have been recommended by your doctor. Choosing an HMO will reduce your coverage, but your premiums will be less.

Getting re-underwritten is the best kept secret in lowering your insurance costs. Your insurance premiums are based on a process called underwriting, in which health insurance carriers consider such things as the status of your health and your age in order to estimate the level of risk you provide to them. Riskier people may cost the insurance companies more, so their premiums will be more. However, most carriers also base your premiums on the other policyholders they insure, by putting you into "pools". For example, one insurance company will include 5 different plans and 100 policyholders in one pool. If a certain number in the pool make claims, then the rates go up for everyone in the pool. Also, as pools age, they tend to get unhealthier as years go on, so rates for the pool can regularly go up. So by switching insurance plans or companies or both, you can effectively be re-underwritten.

A good plan may be to start with another plan first, and if your current carrier can't match the rate of its competitor, then switch carriers also. Switching plans will usually put into a new pool, and newer pools typically have younger, healthier policyholders. It is important to remember not to do your search once in a lifetime, but on an annual basis. Insiders in the industry say you can almost always find a lower rate by moving to a different plan every year. Contact your local agent if you want extra help with all of this. Insurance does not have to be complicated, but it does take some thought and participation on our parts to make it effective and efficient for our personal needs.