With talk of health care reform in the air, there are steps you can take to reduce your health insurance costs long before the government passes a bill.
- Raise your deductible. The size of your deductible can make a huge difference in your monthly health insurance premiums. If you are young and healthy, consider increasing your deductible as high as $5,000. Yes, $5,000 is a lot to pay out of pocket, but if you rarely need medical care you can more than make up for it with lower payments.
- Get an emergency medical endorsement. If you are going to high deductible route, many health policies will allow you to add emergency medical coverage for which your deductible won’t apply. So if you break your leg and need to be hospitalized you won’t be out of pocket that $5,000.
- Compare all the costs between plans. Just because a health plan might be offering lower rates, make sure you understand what the tradeoffs are. Will you have higher co-pays? Are some essential services not covered? Think about how you are likely to use the plan’s services and whether they meet your needs.
- Participate in your employer’s health plan. If your employer offers a health plan, take it. In most cases you will be paying significantly less than if you try to obtain insurance on your own.
- Buy prescriptions through mail order pharmacies. Unlike brick and mortar pharmacies, mail-order pharmacies allow you to buy a 90-day supply of your prescription medication for the same co-pay you would pay for a 30-day supply. This can save you a lot of money over the course of a year.
Regardless of how you choose to save money on health insurance, there is one route you should not take: don’t forgo coverage.